Advertisement
Back To Daily Digest
The Collective Falls Into Administration
Tags: BUSINESS

The Collective Falls Into Administration

Coliving operator The Collective is poised to be broken up by its lenders after falling into administration following its failure to meet its liabilities, marking one of the most significant downfalls within the UK’s real estate industry. 

Last week, The Collective fell into the UK version of a Chapter 11 bankruptcy after its reduced occupancy slowed the company’s income needed to fuel its pre-pandemic expansion. 

Due to the low occupancy rate, the fee income also fell, forcing the company to raise more funding to pay the interest on its loans.

The Latest News
Delivered To Your Inbox

    Now, lenders are looking to sell off big portions of the company’s London and New York assets to take control of part of the portfolio. The administration will only impact The Collective’s assets in the UK, as the company’s U.S. assets are owned by separate entities.

    Prior to its administration, The Collective was seen as a pilot of the coliving industry in the UK that had humble beginnings. 

    Founder Reza Merchant created the company as a brokerage for students seeking affordable shared living arrangements, eventually launching into one of the largest coliving operators in the area.

    ABOUT Aayat Ali
    Aayat Ali

    Aayat is an editor for the Daily Digest based in Lexington, Kentucky. She has worked with local coworking spaces since August of 2017 and enjoys taking her firsthand knowledge to write about the fascinating, constantly evolving world of flexible workspaces. Feel free to reach out to her at [email protected] View all posts by Aayat Ali

    Ad
    Advertisement

    FOLLOW US

    • Facebook
    • Twitter
    • LinkedIn
    • instagram
    • pinterest
    Ad
    Advertisement
    Advertisement
    Knoll + Muuto Work from Home Furniture, Lighting and Accessories
    Advertisement
    Advertisement