IWG Set to Place Regus into Insolvency
Following news that it had filed for Chapter 11 bankruptcy for some of Regus’ US affiliates, International Workplace Group (IWG) recently announced that it plans to file for insolvency for Regus in the hopes of getting IWG “off the hook for £790m of lease agreements, spread across 500 properties.” A statement from the company argued that “IWG resorted to insolvency measures because the COVID-19 pandemic is a black swan event and it has severely impacted business and presented it with unforeseen challenges.”
Hygge Reverses Expansion Plans
Coworking space operator, Hygge, had plans to add square footage to its workspace portfolio this year. However, the COVID-19 pandemic has altered those plans. Bizjournals reported this week that “the pandemic has forced Hygge to end its lease for a 21,000-square-foot expansion at its flagship West Hill Street location.” The coworking operator had signed the lease before the pandemic hit, however due to pandemic, the coworking space lost half of its members and over $10,00 in monthly memberships. Ending the lease, according to Hygge’s founder, “was the right decision to protect the business moving ahead” as it will provide the company with a little more runway to weather the storm.
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New WFT Orders a “Devastating Blow” to UK’s Flexible Workspace Industry
Last week, The UK government advised people in England to go back to working from home in hopes of reducing the UK’s rise in COVID-19 cases. According to Jane Sartin, Executive Director of FlexSA, the statement “was a devastating blow to the flexible workspace industry” arguing that recent early signs of new clients have “immediately ceased” following the announcement. Furthermore, flexible workspace operators in the UK are concerned about the long-term financial impact on their businesses, especially considering that many had already made huge investments in safety measures in order to welcome workers back into their spaces.