Trouble for Chapelfield as Intu warns it could collapse
- Credit: Archant
The owner of Norwich's Chapelfield shopping mall, Intu, has warned it could go bust.
The property manager has said it could collapse if it cannot raise further funds - as it slumped to a £2 billion annual loss.
Intu revealed in results there was a 'material uncertainty' over its ability to continue as a going concern as it faces a cash crunch, having recently been forced to abandon plans to raise up to £1.5 billion to pay down debts.
Chief executive Matthew Roberts said: 'In the short term, fixing the balance sheet is our top priority.
'We have options including alternative capital structures and further disposals to provide liquidity, and will seek to negotiate covenant waivers where appropriate,' he said.
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He added: 'We are focusing all our energies on moving the business forward.'
The news could spell turbulent times for the Norwich shopping centre.
When queried last week about whether Chapelfield may be sold, a spokesman for Intu said: 'We are not commenting on individual sites at the moment. During the process of raising equity a number of alternative options were raised, and we will share the form these will take when we can.
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'The important thing to remember is that investor sentiment at the moment is very low due to the current retail environment, which is leading to devaluation.'