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Eighteen more Regus and Spaces-branded coworking locations across the country filed for voluntary Chapter 11 bankruptcy protection this week, according to court filings.
Each entity or debtor lists its principal address as 3000 Kellway Dr., Suite 140, in Carrollton, Texas. Each debtor is a direct or indirect subsidiary of Regus Corp., which itself is an affiliate of Luxembourg-based IWG PLC.
The company, like other coworking firms, operates by leasing office space from landlords and renting furnished space out to tenants.
A first-day relief declaration dated Aug. 17 lists 656 leases that debtors of Regus Corp. operate. The same document lists debts of about $433 million owed by debtors to Regus Corp.
These are the Los Angeles-area locations that have filed for Chapter 11 bankruptcy:
- Pasadena: RGN-Pasadena I LLC has its principal assets at 155 N. Lake Ave., Suite 800. This entity estimated it has between one and 49 creditors, with estimated assets between $500,001 and $1 million, and estimated liabilities between $500,001 and $1 million. It filed its documents on Sept. 10.
- Pasadena: RGN-Pasadena II LLC has its principal assets at 117 E. Colorado Blvd., Suite 600, Pasadena. This entity estimated it has between one and 49 creditors, with estimated assets between $100,001 and $500,000, and estimated liabilities between $500,001 and $1 million. It filed for Chapter 11 on Sept. 10.
- Culver City: RGN-Culver City I LLC has its principal assets listed at 10100 Venice Blvd., in Culver City. This entity estimated it has between one and 49 creditors, with estimated assets between $1 million and $10 million, and estimated liabilities between $1 million and $10 million. It filed for Chapter 11 on Sept. 8.
- Los Angeles: RGN-Los Angeles I LLC has its principal assets at 3415 S. Sepulveda Blvd. in Palms. This entity estimated it has between one and 49 creditors, with estimated assets between $100,001 and $500,000, and estimated liabilities between $100,001 and $500,000. It filed its documents on Sept. 10.
- Los Angeles: RGN-Los Angeles XXV LLC has its principal assets at 6801 Center Drive on the sixth floor of the Howard Hughes Center in Westchester. This entity estimated it has between one and 49 creditors, with estimated assets between $1 million and $10 million, and estimated liabilities between $1 million and $10 million. It filed for bankruptcy on Sept. 3.
- Santa Monica: RGN-Santa Monica VI LLC has its principal assets at 2450 Colorado Ave. in Santa Monica. This entity estimated it has between one and 49 creditors, with estimated assets between $1 million and $10 million, and estimated liabilities between $1 million and $10 million. It filed its documents on Monday.
These entities, like all others so far, list James Feltman, a managing director at Duff & Phelps in New York, as the responsible officer. Each entity is also being represented by Ian Bambrick of Faegre Drinker Biddle & Reath LLP in Wilmington, Delaware, according to the filings.
In the Aug. 17 first-day declaration, Feltman blamed the company’s latest challenges on COVID-19. He wrote the entities began filing for Chapter 11 when talks between them and their respective landlords came to an impasse.
These entities connected with Regus Corp. intend to use Chapter 11 as a “breathing spell” from landlords’ collection efforts, giving them additional time to restructure new lease terms, according to the Aug. 17 filing. If unsuccessful, the company plans to wind down its operations of the applicable office locations and liquidate assets.
The company did not immediately respond to requests for comment from the Dallas Business Journal, a sister publication of L.A. Biz.
IWG had 1,100 locations across the country as of August 2019.
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