Regus US Files for Chapter 11 Protection

LONDON-The troubled serviced office provider Regus has filed for Chapter 11 bankruptcy protection for its US subsidiary in a bid to buy time to reorganise the American side of the business.

The move, which came after Regus US failed to reach an agreement with landlords in time, will give the company temporary legal protection from creditors while it reorganises its leasehold portfolio. It will also enable Regus to retain key management staff seen as crucial for the future of the business.

Documents filed with the court put consolidated assets in the American operations at £553 million ($887 million) and liabilities at £291.8 million ($468 million). The parent company alone listed total assets of £354.3 million ($568.4 million) and total debts of £17.4 million ($28 million) in its Chapter 11 filing.