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.

With few freeholds in its property portfolio, management is short of options. The chapter 11 filing is the second major move by management to deal with a cash crisis that has engulfed the company as a result of rapid expansion at a time of high rents followed by falling occupier demand. Last December, Regus agreed to sell a 58% stake in its UK business for up to £57 million ($91.4 million).