MANCHESTER REAL ESTATE – News has emerged that the embattled WeWork is to leave its Spinningfields, Manchester location as the flexible workspace firm continues to restructure its operations.
Although the UK business is directed through WeWork International and is not directly impacted by the bankruptcy proceedings in the US, nevertheless, the company has warned that ts ability to continue trading [in the UK] as a going concern was “intrinsically linked to the ongoing trading position of the group,”
Whilst the news that WeWork International will cease to operate from the No 1 Spinningfields, Manchester location it should be noted that 16% of the firms worldwide revenues are from the UK and that in turn, London accounts 89% of its UK office space, suggesting that Spinningfields is not as crucial to the business as initially thought.
The overall business was once valued at $47bn, but has seen its value fall since covid took a hit to its revenues and the business filed for bankruptcy in the US last November.
The company’s locations outside of the US and Canada were not part of this process, but the business is now taking steps to restructure in the UK too as the UK operation has some £731 million in loans payable to its US parent, on which it pays interest of up to 5.9%.
The collaborative and flexible workspace company chose Manchester for its first UK location outside London, back in 2017 and as the deal was announced, it was reported that WeWork had agreed to occupy 60,000 sq ft at No 1 Spinningfields.
A WeWork spokesperson said of the recent news: “As part of WeWork’s efforts to achieve a sustainable capital structure and profitable business to serve our members for the long term, we have made the decision to stop operating at No 1 Spinningfields in Manchester.
“We look forward to continuing to provide our members with flexible space solutions across our other locations in the city and the rest of the UK, which remains a key market for us.”
