Broadmarsh and Victoria Centre owner intu has confirmed it has collapsed into administration after failed talks with lenders, but said its shopping centres will continue to trade.
The shopping centre owner said it has applied to appoint administrators from KPMG, after warning earlier on Friday that it was on the verge of collapse.
However, the company said its shopping centres will continue to trade for the time being despite its insolvency.
The decision looks set to send shockwaves through the retail industry across the UK and throws into doubt the future of the multi-million-pound Broadmarsh redevelopment where work has been paused.
Intu employs about 3,000 staff across the UK, while a further 102,000 work for the shops within its shopping centres.
It warned on Tuesday that its malls may be forced to shut if it was unable to secure the standstill agreement.
The shopping centre giant said in a statement: "Further to the announcement made earlier today, intu properties plc announces that application is being made for James Robert Tucker, Michael Robert Pink and David John Pike of KPMG LLP to be appointed as joint administrators to intu and several other key central entities in the intu Group.
"The appointment is expected to become effective shortly."
Intu, which runs 17 shopping centres, including the Broadmarsh and Victoria Centre, previously confirmed it has administrators on standby under its latest contingency plans, as company bosses engaged in critical talks over its £4.5bn debt.
The talks were to determine what happens after the coronavirus pandemic and come after bank lenders agreed a loan waiver on its debts.
But the agreement expires today (Friday June 26) and intu said "insufficient alignment and agreement has been achieved on such terms."
The administration announcement came minutes after the London Stock Exchange suspended shares in the shopping centre owner.
As such, application is being made for the administrators to be appointed to intu.
On Friday June 12, intu announced it had closed the Broadmarsh Centre due to safety concerns, while construction work has been at a standstill since March.
It said while work on the redevelopment of the site remained "at a standstill" it had "become clear" it could not keep the centre open safely.
Despite the construction industry getting the go-ahead to return to sites in May, intu failed to instruct contractor Sir Robert McAlpine to return to work.
And on Tuesday, June 16, scaffolding was taken down at the shopping centre after redevelopment work was put on hold.
