Co-working company Regus Corp., which provides furnished workspace on short-term deals, has placed more of its portfolio into chapter 11 bankruptcy as office markets in U.S. cities deal with financial pressure caused by the coronavirus pandemic, WSJ Pro Bankruptcy reported. In recent days, Regus has put more than a half-dozen affiliates that hold leases in cities from New York to California into chapter 11 in U.S. Bankruptcy Court in Wilmington, Del. Among the latest filings, on Thursday, were Regus affiliates managing workspaces in New York City, Los Angeles and Denver. A handful of other Regus companies—including ones that hold leases in Philadelphia and San Jose—have been placed into chapter 11 in the past week. They joined other companies—with leases in Washington, D.C.; Arlington Va.; Columbus, Ohio; Chicago; Atlanta and Fort Lauderdale, Fla.—that were placed in bankruptcy in July and August. The latest filings were already contemplated in Regus’s overall restructuring strategy and affect a small portion of its holdings, about 2 percent of the company’s North American portfolio. The spate of filings comes after the company said it would use the breathing spell bankruptcy provides to continue negotiating with some of its landlords. The chapter 11 filings represent a small share of Regus’s overall portfolio. Regus offers on-demand workspace in more than 1,000 locations in the U.S. and Canada.
