Serviced office provider collapses due to shift in working patterns

City Tower

A serviced office provider, with space in Manchester’s City Tower, has shut down due to the coronavirus pandemic, with the loss of seven jobs.

iHub Office is a group of smart serviced offices in Manchester and Birmingham.

It initially took space in City Tower and then in September 2016, Schroder Real Estate announced the company had expanded its offering there.

By 2018 it was operating three floors at City Tower, having signed up to a 10-year lease.

However, Arvindar Jit Singh and Rajnesh Mittal, partners at specialist business advisory firm FRP, were appointed joint administrators of iHub Office on March 12, 2021.

The company has experienced significant financial challenges through the course of the COVID-19 pandemic due to the increase in tenants working from home, reducing the need for office space.

Regrettably, all seven roles at the company have been made redundant and the business has ceased trading.

Rajnesh Mittal said: “The COVID-19 pandemic has had a significant impact on firms of all types.

“The increase in people working from home has put substantial pressures on the serviced offices industry over the past year.

“iHub Office has been unable to meet its financial obligations and has become insolvent.

“We’re now focused on ensuring efficient communication with creditors as part of our statutory duties and working with the staff at iHub Office to help them access the appropriate redundancy support.”

iHub Office dates back to its founding in 2015, under DHR Business Solutions.

It specialised in providing private office space and co-working/hot desking solutions to established and start-up businesses across its two flagship office sites in Manchester and Birmingham.

In March 2018, the company brokered a £1.2m loan facility with alternative finance specialist ThinCats to help fund its expansion plans.

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