Intu is reportedly set to cull some jobs from its head office as a result of a decline in rental income amid a wave of CVAs. The shopping centre giant, like many other retail property firms, has been hit by the recent spate of CVAs being launched by tenants, including Sir Philip Green’s Arcadia Group retail empire.
CVAs are a form of insolvency used by retailers to either close underperforming stores or seek cheaper rent. For Intu, this has led to a net rental income decline from £460 million in 2017 to £450.5 million last year, while occupancy levels fell from 97 per cent to 96 per cent.
A consultation period with head office staff has commenced, and no “front line” staff will be affected. It is not known exactly how may staff will be affected, but it’s anticipated to be a small number as Intu reportedly does not have a need to inform the Department for Business, Energy and Industrial Strategy about the job cuts.
