Background

The Trafford Centre in Manchester is an iconic 1.7msq ft shopping centre, considered one of the UK’s prime retail/leisure complexes attracting around 30 million visitors every year. Following the shopping centre’s owner, Intu Properties, entering administration, the future of the Trafford centre became uncertain with debt exceeding £1 billion after experiencing ongoing challenges in the retail industry. FRP were appointed as receivers to gain control and oversee a restructuring process to secure the future of the iconic centre.

Action

FRP’s Restructuring Advisory team, led by Partner Chad Griffin, made several key managerial, operational and financial changes to reposition the company and maximise its value for sale. The team restructured the Board and worked with independent directors and lender advisors on a restructuring process involving monitoring trading and cashflow, arranging additional funding and transitioning the centre away from Intu to a new asset manager and property manager. The team then managed the sale process through the selection of M&A advisors, devising a lender led transaction as a back up to a third-party sale.

Outcome

The centre was ultimately sold to the Mezzanine lender through a share sale of the holding company, enabling ongoing trade and securing the future of the iconic retail complex.