Metrocentre and Eldon Square owners Intu warn they're likely to fall into administration

Retail giant Intu, which owns the Metrocentre in Gateshead and Eldon Square in Newcastle has said talks with lenders have failed to reach agreement and warned that it is on the verge of calling in administrators. Credit: PA

Retail giant Intu, which owns the Metrocentre in Gateshead and Eldon Square in Newcastle has said talks with lenders have failed to reach agreement and warned that it is on the verge of calling in administrators.

In a statement, the group, which has until midnight on Friday to reach a deal, said:

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Intu shopping centres were forced to close during lockdown, further damaging the company's financial state. Credit: PA

Intu owns a number of shopping centres in the UK.

Earlier this week the company voiced concerns that failure to reach an agreement could lead to shopping malls having to close their doors to customers.

The company was in financial difficulty prior to the COVID-19 outbreak, but the forced closure of the company's store tenants during lockdown accelerated financial downturn.

It emerged earlier this month that KPMG had been appointed to make contingency plans for Intu's administration.