The National Car Parks (NCP) announced it had entered into administration after 95 years in operation, after the company failed to meet its financial obligations.

The car park giant employs approximately 682 people and operates around 340 locations across the UK, including city centres and airports.

In a press release statement, the company blamed Covid-19 for the decrease in performance, and claimed that the demand for parking has not returned to pre-pandemic levels.

Zelf Hussain, joint administrator and PwC partner, said: “NCP has faced a challenging trading environment over several years, with changing consumer behaviours impacting volumes, and a high fixed cost-base leading to trading losses.”

However, many commuters have welcomed the news, claiming the “astronomical” parking charges amid a cost-of-living crisis is driving people to seek alternative parking arrangements.

One Facebook user, Nate Haley, said: “Overpriced parking, no wonder why people don’t use them.”

Another user, Rebecca Pierce, suggested commuters have likely “found alternatives post pandemic”.

The NCP car park on Wellington Street, Sheffield, currently charges between £2.50 for one hour of parking, and up to £14 for 24 hours.

Both employees and commuters have been reassured that “all sites are open, staff remain in post, and trading continues as normal”.