The transaction is an example of how the real estate market, for example offices, has been thrown into turmoil by COVID-19 and the associated lockdowns.
A London-based family office called Celvam Management has repurchased the Argyll Club, the London flexible-office business it previously owned, which was forced into bankruptcy last year, Bloomberg reported (21 February), citing unnamed sources.
In a statement on its website, 6 January, the club said: “In December, a refinancing of The Argyll Club took place which resulted in our senior debt facilities being sold to a third party, following which administrators were appointed to the senior company Lex Midco 1 Limited. Following this process, both the administrators and The Argyll Club have been approached by a number of parties to buy the business.”
“Management are working closely with the administrators to assess options, and would like to reassure our members, teams and suppliers that we are continuing to operate in a business as usual environment. The Argyll Club has remained resilient during what has been a challenging year for the sector and remains in a strong position for its future,” the statement said.
Bloomberg’s article yesterday quoted the club as saying: “The refinancing marks the end of the administration process as agreed with the UK administrators. “The Argyll Club will now work to introduce a new strategy for the business. Existing customers’ agreements will be unaffected by the transaction.” The official declined to comment further, the report added.
The pandemic has hammered office providers because of lockdowns and the shift to working from home. The news service noted that IWG, which owns Regus – a major offices provider – shut locations amidst the pandemic and raised capital to buy out rivals suffering financial stress.
Celvam paid £475 million ($666 million) for the Argyll Club in 2018 when it was known as London Executive Offices.
This publication attempted to contact Celvam but was unable to reach the organisation at the time of going to press.