Monthly Insolvency Statistics: November 2023

National Car Parks (NCP) has entered administration, placing 682 jobs at risk. Administration is a formal insolvency procedure designed to protect a company from creditor action while an administrator assesses whether the business can be rescued, sold, or restructured. In many cases, administrators will attempt to sell the company as a going concern to preserve jobs and maximise returns for creditors. The UK car park operator said demand for parking has not returned to pre-pandemic levels, highlighting “shifts in commuting and customer driving patterns” that have affected revenues. The company said it had been consistently losing cash and was ultimately unable to meet its financial obligations. It also struggled to exit a number of “long-term, inflexible” lease agreements tied to loss-making car park sites. Administrators from PwC have now been appointed and are seeking a buyer for the business, which they say represents the “best outcome” for creditors. "All sites are open, staff remain in post, and trading continues as normal," PwC added. "We will be engaging with landlords, employees, and other stakeholders as we explore all options," PwC said. NCP is one of the largest car park operators in the UK, managing around 340 car parks nationwide, including sites located at airports, hospitals and major transport hubs. According to a recent filing by its parent company, NCP’s liabilities exceeded the value of its assets by £305m as of 30 September last year. PwC said the business had a “high concentration” of inflexible lease agreements, which limited its ability to reduce costs or close unprofitable sites. Zelf Hussain, joint administrator and PwC partner, said the company had faced “a challenging trading environment” in recent years. "Our priority on appointment is to ensure continuity of service while we undertake a detailed review of the business." It does seem that the rents that they were paying were too high given the changing patterns of behaviour.  One presumes they had very long leases of 10 years+  Only administration can release them from these lease obligations.  Local councils who are likely the main freeholders of the sites are likely to take a hit on the loss of rent. Sir Donald Gosling and Ronald Hobson teamed up to found what became NCP after investing £200 in a bombsite in central London in October 1948.  They sold the business in 1998 for £500m and it is now owned by a Japanese Conglomorate Park24 Many years ago Sir Donald Gosling, one of the co-founders who owned the business, was amongst the richest individuals in the UK and frequently appeared in the "Sunday Times Rich List"  He at one time had one of the biggest Super Yachts in the world.  How times have changed!  He set up the Gosling Charitable Foundation that has done great works in the Naval arena

Update 31th March.  The company has officially entered into administration with potential buyers lined up. Renowned pottery manufacturer Denby has confirmed plans to appoint administrators after facing significant financial pressures in recent years. The Derbyshire-based company, which was founded in 1809, has been a well-known name in British ceramics for more than two centuries. The business was previously rescued in 2009 when it was acquired by investment firm Hilco Capital. In a statement released on Thursday, The Denby Group confirmed it had filed a notice of intention to appoint administrators, describing the move as “a precautionary measure”. The company said it had been unable to secure a suitable investment partner despite exploring a range of options. According to the company, a combination of reduced demand, rising employment costs and sharply higher energy prices has placed increasing financial strain on the business. Denby also said that tighter financial markets had made it more difficult to access new funding. "While Denby has explored a range of options, it has not yet been able to secure a strategic investment partner aligned with the long-term vision and values of its historic British brands much loved by their large global fan base," the statement said. "The search for a suitable partner will continue whether for the Denby Group as a whole or for the brands individually." The company added that the notice of intention provides short-term protection from creditor action while it continues to explore funding and restructuring options. It confirmed that Denby and its subsidiary Burgess and Leigh will continue trading during this period, along with the company’s international subsidiaries. 'A worrying time' Following the announcement, union representatives said the situation would be concerning for employees. GMB union organiser Craig Thomson said it was a "worrying time" for Denby workers. "Denby pottery is a British icon, producing some of the world's finest ceramics," he said. "This is a worrying time for workers across Denby. We are working closely with our members and reps on site. "Britain's ceramics industry is the envy of the world. "We must now see urgent government action on energy prices to support the sector through this time of turbulence." Derbyshire Labour MP Linsey Farnsworth also said she had held an "urgent meeting" with the company and had been in contact with the GMB union. Farnsworth, who represents Amber Valley in Derbyshire, said: "Denby remains a world-class, viable manufacturer that continues to trade and meet demand. "I am acting as a direct link between the company and the Department for Business and Trade to ensure every possible avenue is explored to secure a positive outcome for Amber Valley." 2025 and 2026 have been a difficult years for the industry. Royal Stafford also went into administration in February (2025). Other closures include Dudson (2019), Wade (2023), and Johnsons Tiles (2024).