UK: Coliving operator The Collective has appointed FTI Consulting as its administrators after failing to achieve a sale of the business.
Matthew Callaghan, Andrew Johnson, and Lisa Rickelton from FTI Consulting have been appointed joint administrators of The Collective (Living) Group Limited, the parent company of The Collective group and The Collective (Living) Limited, the UK operating company, this evening.
The Collective appointed Credit Suisse Group AG in June this year to explore options for a full or partial sale. But having failed to attract a buyer, the company is now in administration, thanks to a combination of debt, high operational costs and low occupancy. It has 1,623 operating units but a hugely ambitious development pipeline of nearly 7,000 units across the UK, US, Ireland and Germany.
A statement issued by the administrators said an agreement had been reached in principle with key stakeholders at Canary Wharf and Old Oak that allowed the continued provision of central services to these coliving sites. All assets outside the UK, which are held in separate entities, remain under the control of their directors and do not form part of the administrations.
The Collective (Living) Limited employs 62 employees. The administrators said there would be no immediate redundancies but it was likely that a number of redundancies would need to be made in the coming weeks.
Matthew Callaghan, a senior managing director at FTI Consulting and one of the joint administrators, said: “It is incredibly disappointing that a sale of the group has not been achieved. However, we are pleased to announce an agreement has been reached that ensures continuity at the operating sites. We will continue to work with the various stakeholders to ensure a smooth transition whilst we assess the potential options for the group and support the impacted employees through this difficult period.”
