One of the owners of The Mall shopping centre has issued a statement warning of the impact Covid-19 could have on its business.
Property giant Intu, which co-owns the Cribbs Causeway centre, says it was due rents on Wednesday (March 25) but only received 29 per cent of what it is owed - down from 77 percent the year before.
The company is now warning that it could breach some of its debt commitments unless it secures a waiver from lenders.
Intu has already semi-closed all its UK shopping centres and the Mall currently only has two 'essential businesses' open.
The shopping centre owner said it was in “constructive discussions” with lenders but it could no longer provide guidance in relation to the 2020 financial year.
“Our three priorities are to look after our employees, to protect our business and to play our role in society,” Intu said in a statement.
“The reduced social activity is likely to continue for the foreseeable future impacting our footfall and potential future rents.”
It added: “In line with the latest Government advice... only essential stores, such as supermarkets, pharmacies and banks, remain open.”
Intu said it had immediately available cash and facilities of £184million but it had “significantly reduced” capital expenditure for the “foreseeable future” and was planning to cut back on head office costs to maintain additional cash within the business.
The company also said it was in “ongoing dialogue” with the Government and may look to access its £330billion support package.
Intu said it expects measures announced around business rates suspension, employee cost support and tax payment deferrals, to have a “positive impact”.
They added: “In these difficult times we continue to assess all strategic alternatives and will provide further updates as appropriate.”
The news follows a confirmed case of coronavirus at The Mall on Monday.
