The administrators of intu properties says the shopping operator’s centres are continuing to run as normal.

Jim Tucker, David Pike, and Mike Pink from KPMG were jointly appointed administrators of intu properties on June 26 after intu failed to come to an agreement with its lenders over huge debt repayments.

The news cast doubt over the future of intu’s 17 UK shopping centres, including its one in Watford.

However, all of intu’s centres, which are owned separately from intu properties plc and fall outside of the insolvency process, have stayed open.

This was because an agreement was reached in June between all of the key stakeholders involved in the administration process.

For the time being, intu’s shopping centres will continue to trade, but since the end of June, the administrators have been assessing the options for the intu group.

Watford Observer:

A spokesperson for KMPG issued the following statement about what is likely to happen next.

They said: “Over the next few months, central services for the companies which own the shopping centres will gradually migrate to alternative providers under our supervision.

“In the meantime, the shopping centres continue to operate and trade as normal, under the control of their directors.”

Last week, it emerged that one of intu’s biggest sites, the Trafford Centre in Manchester, had been put up for sale.

It is understood PJT Partners and CBRE will be advising on a sales process.

A spokesperson for the joint administrators of intu properties plc said (of the Trafford Centre): “All parties are working constructively together to maximise value for this highly attractive asset.”

Alongside intu’s administration. Watford’s indoor shopping centre has been dealt two big blows this year with the loss of both Debenhams and John Lewis – although a Next Beauty store is set to move into the Debenhams premises.

Watford Observer:

Debenhams at intu Watford has closed

Fortunately, the £180 million extension of intu Watford was completed before intu’s finances really started getting into trouble.

Some intu centres, like its Broadmarsh centre in Nottingham, were in the process of being redeveloped when intu fell into administration.

Unlike some of its centres, intu does not wholly own intu Watford.

Seven per cent of the centre is owned by Watford Borough Council and the council also owns the freehold of the site.

This means the council has a say on the future of the site.