REGUS UK is Bankrupt



ORIGINAL POST
Posted by Ed 3 yrs ago
https://hongkong.asiaxpat.com/Utility/GetImage.ashx?ImageID=5094fbc4-7515-495e-8d46-02cee0187ee4&refreshStamp=0 
Short-term office provider IWG is looking to close at least a fifth of its work centers in New York City as the parent company prepares to throw its Regus subsidiary into bankruptcy in the U.K.
 
Regus recently closed what it called its flagship business center in Midtown East at the 39-story office tower 747 Third Avenue, sources familiar with the property told The Real Deal.
 
The company also closed a center in Midtown South at 387 Park Avenue South, sources said. And Regus on Friday filed for bankruptcy protection for a center nearby at 287 Park Avenue South, records from Delaware bankruptcy court show. 
 
A spokesperson for U.K.-based IWG, headed by CEO Mark Dixon, declined to comment on the New York City closings, but sent a statement saying the pandemic “is a black swan event and it has severely impacted our business and presented us with unforeseen challenges.” 
 
 

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COMMENTS
Ed 3 yrs ago

 WeWork Close to the End of the Line?

WeWork’s credit rating, already rated as junk, has been downgraded on concerns that the pandemic could seriously weaken demand for office space.
 

Ratings agency Fitch dropped WeWork’s long-term issuer default rating Thursday one notch from CCC+ to CCC.

Both scales are non-investment grades, otherwise known as junk or high-yield status, representing a real possibility that the company will default on its credit obligations.
 
 “The downgrade reflects Fitch’s concern over the viability of WeWork’s business model in light of a potential lasting shift by companies to a hybrid office model that leads to permanently lower office space demand,” the ratings agency wrote.
 

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