‘Unattractive’ shopping centres 'in crisis'

The National Retail Research Knowledge Exchange Centre has warned that over 200 of the UK’s shopping centres are in danger of falling into administration.

The centre’s Nelson Blackley said that, while the Department for Communities remains ‘committed to helping communities adapt’ to the situation, the fact remains that the demise of major anchor stores, such as BHS and Toys R Us, alongside the rise of online shopping has caused a ‘downward spiral’.

With the UK suffering from an excess of shopping centres with similar retail offerings, Blackley’s warning claims that many of the at-risk centres are owned by US private equity firms under deals that will need refinancing. New data from asset management firm APAM suggests that over 200 shopping centres in the UK are in danger of falling into administration, unless their owners secure fresh funding.

Simon Cooke, executive director of APAM, said: "We think these shopping centres have been hit with the perfect storm of defaulting retail markets, weaker consumer spending, the impact of the internet and rising rents and rates, making it very difficult for retailers to trade and make a profit. We perceive many of these borrowers beginning to breach land covenants."