WeWork is to close a flagship UK office at No.1 Spinningfields in Manchester, with tenants told they must be out by the end of the month.
The US-headquartered flexible workspace company – once valued at $47 billion but now undergoing a restructure – has told residents that it will assist them with relocation, if desired, to its other bases in the city centre.
Late last year WeWork said its four offices in Manchester – the company’s only bases in the North West – were unaffected by the decision to file for bankruptcy in the US.
However, in an email seen by BusinessCloud, residents have now been told: “After carefully evaluating our offerings in Manchester, we have made the decision to stop operating at WeWork No 1 Spinningfields… the move out will occur by 31 May 2024.
“We understand this may cause disruption to your business and are very sorry for any inconvenience this may cause.”
It said it “regularly reviews our real estate portfolio… to build a sustainable business to operate for the long term”.
The shared workspace in Manchester’s financial district is 60,000 sq ft in size. The other locations are 1 St Peter’s Square (40,000 sq ft), The Hanover Building (91,000 sq ft) and Dalton Place (65,000 sq ft).
BusinessCloud has approached WeWork for comment.
This week WeWork rebuffed a bid from controversial founder Adam Neumann to buy back the company for a cut-price $650 million.
It has confirmed that senior creditors will instead take control of the business, with lenders pumping in a fresh $450m in return for ownership.
The plan has been approved by a Federal bankruptcy court judge, with creditors scheduled to vote on the deal at the end of the month.