Fri, 01 Mar 2024 | BUSINESS SALE
A group of serviced office operators has been acquired out of administration by companies owned by most of the existing management team. BE Offices, which operates close to 300,000 sq ft of flexible workspace across England and Northern Ireland, has been significantly impacted by COVID-19 and its ongoing aftereffects in recent years.
The group’s business model was severely affected by the pandemic, with millions forced to work from home during lockdown and many of those workers continuing to do so on at least a part-time basis even after restrictions had been lifted.
In 2021, the group reported turnover of £24 million, down from £36.1 million a year earlier, and a post-tax loss of £20.5 million. During 2021 and 2022, centres in Manchester, Bristol Marylebone, Canary Wharf and Royal Exchange were shut down.
The group’s directors retained ReSolve, securing 11 moratoriums and, subsequently 16 separate, interrelated CVA proposals, which were all approved by creditors during the first half of 2022.
However, demand did not recover during the next year, as home working continued to be popular and the group’s revenue expectations were not met. By December 2023, the group’s CVAs had failed and it fell into administration, with ReSolve retained once more to run an accelerated marketing campaign in January 2024 and sales secured on February 7 for 13 companies in the group.
In the wake of the closures in 2021 and 2022, the group operated 13 workspaces, with 10 across London and further flexible spaces in Belfast, Birmingham and Southampton. Close to 200 people worked across the business, but the company did not employ any staff directly.
Joint administrator and ReSolve partner Lee Manning commented: “We are pleased to have secured the sales which was vital to saving BE Offices’ business. The effects of the pandemic can still be seen across many industries, and serviced offices and flexible workplaces are a prime example of these lingering difficulties.”
BE Flexible Space founder and Joint CEO Simon Rusk added: “We would like to thank ReSolve for their efficiency during this, allowing us to swiftly conclude this period of uncertainty and giving a robust platform for future operations and growth.”
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