Over the course of a few months, IWG, parent company for Regus, has filed bankruptcy for 97 different entities connected to both Regus and its coworking brand Spaces.
These locations have voluntarily filed for Chapter 11 bankruptcy protection, with each entity being a direct or indirect subsidiary of Regus.
For instance, RGN-Irving II LLC that has principal assets in Irving, Texas lists one and 49 debtors with liabilities ranging from $500,001 to $1 million. The entity also lists James Feltman, managing director at Duff & Phelps, as the officer responsible.
The first-day relief declaration on August 17 listed 656 leases that debtors of Regus operate. The document also reveals debts of $432.9 million are owed by debtors to the company.
Feltman blamed the company’s ongoing challenges on the pandemic, stating that entities started filing for Chapter 11 when talks with landlords came to a halt.
The filings were meant to serve as a “breathing spell” to give them time to restructure leases as landlords attempt to collect missed rent and other costs. If that does not pan out, the company will slowly close down operations and liquidate assets.
“In the new world of working post COVID-19, offices will still be needed but there will be a greater requirement for more flexible space,” the Aug. 4 report said. “More companies will have distributed workforces with more satellite offices, more employees working closer to home or continuing to work from home.”