THE company that operates intu Lakeside shopping centre is in the midst of a financial crisis after being forced to call a halt to fundraising plans.

Intu, owner of some of Britain's biggest shopping centres including the Trafford centre in Manchester, is battling to shore up its finances after "extreme" market conditions derailed fundraising plans.

Intu had been seeking to tap investors for between £1bn and £1.5bn as it struggles with debt.

But it has now been forced to scrap the plan and said it would look at other options that could include selling off assets.

The company has borne the brunt of company voluntary arrangements (CVAs) - a form of insolvency used by retailers to restructure leases with lower rents - from brands including Debenhams, Toys R Us, House of Fraser, New Look and HMV.

Intu's financial woes partly stem from the fact that the valuation attached to its property portfolio has been sharply reduced.

Intu has already disposed of assets including shopping centres in Spain, cut capital spending, and suspended its dividend as it seeks to shore up its finances.

Chief executive Matthew Roberts said: "We remain focused on fixing our balance sheet in the near term to ensure this business has the financial footing it needs to realise its significant potential.

"While it is disappointing that the extreme market conditions have prevented us from moving forward with our planned equity raise, I am pleased that a number of alternative options have presented themselves during the process which we will now explore further."