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Regus Puts Portion of Its Portfolio into Chapter 11
RGN Group Holdings LLC, the company that operates Regus shared office suites, has voluntarily filed for Chapter 11 protection in the U. S. Bankruptcy Court for the District of Delaware for a segment of its portfolio. Included in the filing, representing a small portion of Regus’ portfolio, were locations in New York City, Chicago and San Francisco, among other markets.
The pandemic has “severely disrupted business plans and operations for certain locations within the company’s U.S. portfolio,” the company said in court documents. “With the near universal adoption of work-from-home policies by U.S. businesses during the early months of the pandemic, demand for temporary office space has been depressed…”
As a result, “certain occupants’ inability to timely pay their occupancy fees—or unwillingness to do so, as part of their emergency cash-conservation measures—has impacted the company’s liquidity at the level of the U.S. portfolio,” RGN said in court documents.
Pictured: A Regus location in Dallas.
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