NCP, the operator of car parks, is pursuing drivers for outstanding parking fines even after the company collapsed earlier this year. The company went into administration in March, endangering nearly 700 jobs and operating approximately 340 car parks across the UK.
According to The Times, in the first month of administration, teams managed to collect £402,000 in unpaid parking fines. NCP faced a substantial backlog of almost 100,000 unpaid parking charge notices at the time of its collapse. This included about 15,000 cases awaiting court hearings and an additional 80,000 in the hands of debt collectors. Despite being in administration, NCP retains the authority to enforce existing fines and issue new ones.
Reportedly, 29 of NCP’s car parks have been shut down post-collapse, while the remaining facilities are functioning normally as efforts are made by administrators at PwC to locate a new owner. NCP leases most of the car parks it operates from freeholders, rather than owning them outright. The company cited reduced demand for parking post-Covid, largely due to the shift towards remote work, as a significant financial challenge.
Particularly impacted were city-center and commuter sites. NCP also struggled with expenses related to long-term and rigid leases on unprofitable properties. Founded in London in 1931, NCP is owned by Japanese company Park24. Parking rates vary by location, with certain central London spots charging up to £60 for a 24-hour stay.
Zelf Hussain, joint administrator and partner at PwC, expressed that NCP had faced tough market conditions over the years, with changing consumer behaviors and high fixed costs resulting in trading losses. Ensuring service continuity and conducting a thorough business review were top priorities upon assuming administrative duties. Engagements with landlords, employees, and other stakeholders were planned to explore various options, including potential business sales, to secure the best outcome for creditors.