HQ Global Files Chapter 11; Streamlining Under Way

The contact says it is against company policy to disclose the amount of office space under the firm's control. According to HQ Global's announcement of the bankruptcy filing, its 38,000 client roster can expect little disruption of services as a result of the reorganization filed in US Bankruptcy Court for the District of Delaware. Jon Halpern, HQ Global's CEO, says recent actions have driven the closing of unprofitable office centers, workforce cuts and elimination of excess inventory.

HQ Global holds a commitment for a $30-million debtor-in-possession financing. Upon court approval and contract execution, the pool will provide enough capital to maintain the recent streamlined operations, according to the company statement. "We have accomplished a great deal in the last few months, " Halpern said, adding the firm is "well positioned to emerge from Chapter 11 as a strong, profitable company."

HQ Global's office space is provided through a network of more than 400 company-owned and franchise pacts. The firm most often leases in class A buildings and provides furnished private offices, team rooms and meeting areas along with business services as for Fortune 100 corporations, small- to mid-size companies and independent entrepreneurs.

New York City-based FrontLine Capital Group, which had NASDAQ trading halted yesterday, is the majority owner of HQ Global Workplaces. HQ Global's Chapter 11 filing comes after a failed sale to Britain Regus, according to Hoover's Online. FrontLine Capital acquired HQ Global from Washington, DC-based CarrAmerica Realty and rolled it into its Vantas office suite division. FrontLine Capital's chairman, CEO and president is Scott H. Rechler, who also is co-CEO of Reckson Associates Realty Corp., headquartered in Melville, NY.