The parent company of the St George’s Shopping Centre has fallen into administration.Advertisement
It is thought that this is due to the impact of the coronavirus pandemic on trading at the shopping centre.
InfraRed are the owners of the shopping centre and the announcement of administration comes after they defaulted on a loan.
They bought the centre in 2015 for £73m and the purchase was backed by US-based lender Wells Fargo, according to PlaceNorthWest.
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On Monday 1 February Alexander Williams and Andrew Dolliver of Ernst & Young LLP were appointed as co-administrators to St George’s.
Mr Williams told Blog Preston: “The administration of the Partnership and the Companies will have no operational impact on St Georges Shopping Centre which continues to trade in compliance with Government Covid regulations on a business as usual basis.”
The Property Managers (Munroe K) and Asset Managers (Sovereign Centros) of the shopping centre remain in their existing roles.
Due to Covid restrictions and the closing of retail many shops have felt the pressure and the UK’s largest shopping centre owner Intu properties went into administration last June.
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Mark Whittle, Director of Membership Services & Preston City Centre BID Manager said: “The pandemic has had an incredibly adverse effect on bricks and mortar retailers, St George’s has been an integral part of the city’s retail offer for decades, we’re confident it will remain so.
“We are pleased that it’s very much business as usual at the shopping centre, in line with current restrictions, and as we move closer to understanding what the government’s re-opening plans look like, it is essential that consumers continue to support St George’s, and the rest of the city centre, to help our local businesses bounce back from the current crisis and to retain local jobs.
“While some of the government’s recent support measures have helped some businesses keep going through the pandemic, it is increasingly clear that shopping centres need more help. They drive significant amounts of footfall which is also enjoyed by other businesses locally, especially independents.”
Boris Johnson is expected to announce a roadmap on Monday 22 February which will include when the retail sector will reopen.
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