Administrators secure rescue deal for serviced office operator
Thirteen businesses within the BE Offices group have been sold out of administration, safeguarding nearly 200 jobs.
Now administrators at ReSolve have sold the firms to companies owned by most of the management team and will continue to operate under the BE Offices brand.
Whilst the companies did not employ any staff directly, there are almost 200 people working across the group and this sale has secured future employment for the majority.
BE Offices operates almost 300,000 sq ft of flexible workspace across London, Belfast, Birmingham and Southampton. In Birmingham, the flexible workspace at Somerset House, 37 Temple Street, had options to take from 1 to up to 200 desks as well as featuring a garden roof terrace, a gym and a GolfZon indoor golf simulator.
The pandemic had significantly impacted the business model, leading to millions of pounds of lost income in the first year of the pandemic. Directors retained ReSolve, which secured eleven moratoriums, and subsequently sixteen separate (but interrelated) CVA proposals which were all approved by the creditors in the first half of 2022.
Demand, however, did not recover over the following year as a result of the shift to home working and revenue expectations did not materialise. By December 2023, the CVAs had failed, and in early January 2024, ReSolve was approached again to run an accelerated marketing campaign.
Sales were secured on February 7.
Lee Manning, joint administrator and Partner at ReSolve said: “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”.
Simon Rusk, Joint CEO and Founder, BE Flexible Space, commented: “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.”
