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Serendipity Labs Proves Its Industry Experience Again

by Allwork.Space - Press
July 16, 2020
in Press
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  • Serendipity Labs to Restructure its Parent company, Serendipity Labs, Inc, via Recently Enacted Small Business Reorganization Act and CARES Act Provisions.
  • Serendipity Labs deploys a creative solution to sustain its growth and stability with newly enacted legislation, as the Covid crisis impacts access to private debt capital for coworking.
  • Move allows restructuring of corporate debt, without affecting its franchise, management subsidiaries or independently owned or affiliated coworking locations.

Serendipity Labs, Inc., the parent holding company of Serendipity Labs brand coworking, (the “Company”) has elected to use the recently enacted Small Business Reorganization Act (SBRA), as modified by the CARES Act which temporarily expands the SBRA eligibility criteria, to restructure its corporate level senior debt. The restructuring move does not include the Company’s subsidiaries, Serendipity Labs Franchise International, LLC, Serendipity Labs Management, LLC nor any of the coworking location entities which are each independently owned.

As the Company entered 2020, it was building on prior years’ momentum and growth and was enjoying the tailwinds of market trends in favor of flexible workspaces and flexible work. The Company operated with significant positive cash flow through the end of the 1Q 2020 and was profitable on a GAAP basis for the half year ending June 30, despite the steep downturn in 2Q. However, the onset of the Covid-19 Pandemic has adversely impacted the private capital markets and therefore the Company’s ability to refinance or restructure its senior debt obligation before its maturity date. The SBRA provides for an expedited, simplified reorganization process for companies with debts under a certain threshold to negotiate a fair and equitable plan to repay obligations over time and preserve shareholder equity.

The Company, which is a flexible office industry leader offering a national network of over 35 locations, has taken this action in order to protect all stakeholders and put the Company on a stronger, more competitive footing. This action will allow it to capitalize on the growth opportunities a consensus of experts believe will be even more pronounced as the world emerges from the Covid-19 Pandemic, where client companies and their employees seek safe, flexible, distributed workplace solutions to support remote work. 

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Serendipity Labs Chairman and CEO, John Arenas stated, “Serendipity Labs has been at the forefront of the workplace revolution supporting distributed and remote work since 2011. The current actions will ensure the Company can continue to meet the accelerating demand for safe, welcoming and inspiring workplaces, and grow its location network through licensing of its brand platform and delivery of world class management services.”

About Serendipity Labs

Headquartered in Rye, NY, Serendipity Labs Inc., is an American workplace-as-a-service company that manages and licenses its flexible office brand to landlords and is growing internationally through area development partners and marketing agreements. Serendipity Labs was established in 2011 by industry leader John Arenas. Products and services for its network of trusted locations include team suites, private offices, coworking, and virtual memberships along with meeting and event facilities and business continuity plans which allow companies of all sizes to use Serendipity Labs as a real estate strategy alternative. Every Serendipity Labs location meets CDC Covid-19 Pandemic health and safety requirements. www.serendipitylabs.com

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