Accountancy watchdog the Financial Reporting Council has launched an investigation into big four firm PwC's auditing of shopping centre and leisure group Intu Properties plc.
The audit and accountancy regulator will look at PwC's handling of Intu's 2017 and 2018 accounts, a period before the firm's collapse into administration. Following a drop in rents brought on by Covid restrictions, Intu - which had owned some of the UK's largest shopping and leisure centres as well as properties in Spain - had suffered massive debt problems and struggled to get lenders to agree an 18 month standstill period that would give it breathing space.
The 3,000-strong firm eventually went into administration in June 2020 following failed rescue talks and breaches of debt covenants with lenders. Problems were apparent prior to that as accounts for 2018 - one of the periods under investigation - show debts of £4.8bn and subsequent accounts for following year show the firm made a £2bn loss with then chief executive Matthew Roberts acknowledging "material uncertainty in relation to Intu's ability to continue as a going concern".
