| Comment | They borrowed money to purchase, build and renovate their shopping centres. Over the years the value of retail property has fallen, as units sit empty for longer and rents stagnate. Of course the value of the debt doesn't fall with it.
Now the pandemic has meant most of their tennants aren't paying rent, leaving intu unable to make repayments. Selling malls won't help as they're no longer worth enough to clear the debt. The creditors don't believe a sudden improvement in the retail sector is likely, so they weren't able to negotiate a deal with them.
With no other options, Intu are bankrupt. |
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