Car park firm NCP collapses with nearly 700 jobs at risk

National Car Parks (NCP), a prominent UK car park operator with a history spanning 95 years, has entered administration, posing a threat to 682 jobs. The firm, which manages around 340 parking sites including those at airports, hospitals, and train stations, has struggled financially, leading to this significant development.

According to the appointed administrators PwC, the recovery in parking demand has lagged behind pre-pandemic levels due to altered commuting habits and changes in customer driving patterns. NCP had been facing mounting losses for some time and found itself unable to meet obligations to creditors. A key issue contributing to its financial difficulties was the presence of numerous long-term, inflexible leases on sites that consistently failed to be profitable.

PwC has emphasized that all of NCP’s locations remain open, with employees continuing their roles and operations ongoing as usual. The firm is actively exploring the best way forward, which includes the possibility of selling parts or all of the business. “We will be engaging with landlords, employees, and other stakeholders as we explore all options,” said Zelf Hussain, joint administrator and PwC partner, highlighting their focus on maintaining service continuity during a detailed review of the company.

The financial pressure on NCP has been further compounded by rising energy costs, partly attributed to the geopolitical consequences stemming from the conflict in Ukraine in 2022, according to its Japanese parent company, Park24. Despite efforts to stimulate revenue growth by opening new car park developments and implementing cost-saving initiatives, the company could not reverse its ongoing structural losses. Ultimately, NCP concluded there was “no prospect of improvement in its cash‑flow position,” leading to the decision to enter administration

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