- What IWG is in talks to buy The Clubhouse
- Why The Clubhouse has entered administration
- What next Deal is close to closing
High-end flexible office operator, The Clubhouse, has entered administration.
Regus and Spaces owner IWG is in talks to buy the business which has four locations in London, in Mayfair, St James’s, Bank and Holborn Circus.
In 2016 the business agreed a lease on the ground and lower ground floors of 7-8 St James’s Square, now owned by Stanley Ho, at a rent of just over £50 per sq ft.
According to The Sunday Times the business has struggled to raise new cash after being and has struggled with rising business rates. It had previously raised £950,000 through Seeders, the crowdfunding site that is backed by troubled stock picker Neil Woodford.
A market under the microscope
The rapidly expanding flexible office market is under great scrutiny amidst concerns over the sustainability of some businesses in the face of any economic downturn.
IWG itself is looking to dispose of some business arms in order to maximise its profitability following aborted takeover talks last year. It has sold its Japanese and Taiwanese business units and has also explored the sale of its Spaces brand.
BE Offices is currently considering bringing in new equity into the £200m business, whilst Brockton Capital’s Fora business is exploring a refinancing.
