The co-working business Central Working has unfortunately announced that it has just gone into administration, having just appointed administrators Quantuma, the independent advisory firm to deal with the fallout.
Central Working recently notified tenants about the collapse through a letter that indicated buyers are in the process of due diligence on the company. However, the firm did not say who the interested parties were in this notification.
Who are Central Working?
Central Working traded as a co-working company and offered offices to rent in London. The firm has over 11 sites across the country, and hosts within these office spaces a whopping 1,850 companies within them and approximately 3,500 people.
The business was founded back in 2011 and currently employers over 48 people.
In terms of the locations of the company, three of the seven London sites of Central Working are based in the City: a popular location for many co-working ventures at this moment in time, with many locating to Central London in order to attract new tech firms with considerable potential in the area. This includes offices in soho and clerkenwell.
Why has the coworking space gone into administration?
What led to its demise? The news of its collapse comes hot off the heels that the flexible office space behemoth WeWork, was suffering huge difficulties, and it comes after concerns about the co-working business model.
Problems concerning both firms highlight the potential signs of stress in the co-working industry.
What about WeWork?
The workspace giant, WeWork, has been in the headlines a lot in recent weeks. The company’s board has very recently announced it will be accepting a lifeline from the Japanese investor Softbank.
The deal will mean that the co-founder Adam Neumann will end up pocketing a whopping £1.3 billion. However, it will mean that Nemumnaan will be required to cut the majority of his connections with the firm.
The rescue package that was offered by Softbank was chosen by the coworking firm instead of a deal that was also offered by the lender JP Morgan Chase.