• Report: #430032

Complaint Review: Regus Management Group

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  • Submitted: Mon, March 02, 2009
  • Updated: Thu, July 02, 2009

  • Reported By:Yonkers New York
Regus Management Group
520 White Plains Road, Suite 500 Tarrytown, New York U.S.A.
  • Phone: 914-467-7800
  • Web:
  • Category: Realtors

Regus Management Group, Regus Management Group renews your lease without your permission. Total scam. Be very careful with them. Tarrytown New York

*UPDATE EX-employee responds: THOUSANDS OF REGUS VICTIMS CONFIRM: Regus Group and CEO Mark Dixon are totally corrupt & fraudulent

*UPDATE EX-employee responds: Ex-CLIENTS CONFIRM: Regus Group and CEO Mark Dixon are totally corrupt

*UPDATE EX-employee responds: Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

*UPDATE EX-employee responds: Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

*UPDATE EX-employee responds: Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

*UPDATE EX-employee responds: Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

*UPDATE EX-employee responds: Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

*UPDATE EX-employee responds: Regus staves off bankruptcy with 57m UK disposal

*UPDATE EX-employee responds: 'Hotdog hero' hits hard times: Regus chief executive Mark Dixon faces an uncertain future as the US arm of his company files for bankcruptcy!

*UPDATE EX-employee responds: THE REGUS GROUP IS A 100% SCAM OPERATION!!! - HERE IS WHAT OTHER CLIENTS & EX-EMPLOYEES ARE SAYING ABOUT REGUS! STAY AWAY FROM THESE SCAM ARTISTS

*UPDATE Employee: REGUS GROUP/HQ MANAGEMENT GROUP IS A GLOBAL SCAM OPERATION! UNDER INVESTIGATION FOR FRAUD

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Hi,
In August 2007, I signed a 3 month lease for an office at Regus that would commence in September 2007. After the lease expired I remained in the office paying the same rent, refusing to sign another lease. I continue paying month to month while they kept trying to raise my rent with me refusing to pay more. This kept going until March 2008, when they told me instead of negotiating the rent every month, I should sign a year lease and my rent would be guaranteed. So I agreed and they gave me a form to fill out in March 2008. I signed it thinking I now am going to be in this office until February 2009, when my year would be up.

Late in 2008 I went in to discuss the ending of my lease with the management of Regus. They informed me that my lease does not end in February 2009 but in May 2009. I asked, how can that be? They informed me that they had without my permission been renewing my lease twice. They renewed my lease in the beginning of March 2008 for three months without telling me even when I sat there later in March 2008 signing a one year lease. That is why they started my one year lease in June 2008; at the time not telling me.

With them doing that a twelve month lease became a fifteen month lease even though the lease says 12-month lease. Not telling before or after that I had a lease is not a fair business practice. I thought I was paying month to month as they kept trying to raise my rent.
How can they renew my lease without discussing it with me? I signed a year lease in March 2008. That lease should have been completed in February 2009 not May 2009.

Dwayne
Yonkers, New York
U.S.A.

This report was posted on Ripoff Report on 03/02/2009 04:00 PM and is a permanent record located here: http://www.ripoffreport.com/r/Regus-Management-Group/Tarrytown-New-York-10591/Regus-Management-Group-Regus-Management-Group-renews-your-lease-without-your-permission-430032. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.

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Updates & Rebuttals

#1 UPDATE EX-employee responds

THOUSANDS OF REGUS VICTIMS CONFIRM: Regus Group and CEO Mark Dixon are totally corrupt & fraudulent

AUTHOR: Vanessa Parker - (U.S.A.)

Egregious Regus Unofficial Site
1000 locations. 450 cities. 75 countries. One call. NO SERVICE.
Regus Group and HQ Global Workplaces provide office space, virtual offices, meeting rooms, mailing addresses, receptionist and other services etc. The concept is to work smarter perhaps at a reduced cost. But at what real cost?

Here is the problem...

Regus terminated my agreement after several years with them. The area director, Michelle Prentiss, had promised to provide better service and stepped into assist with some issues at the center and unfortunately there was no resolution.

After paying for about half of my expenses related to Regus improperly publishing and issuing the innacurate address, they terminated the agreement thus leaving me to front the cost of changing my address again on everything just 8 months later!
Regus has a high turn over rate at the front desk If you enjoy:

Mail being returned due to improper address used by Regus (prior 4.08)
New hires constantly and/or temp personel
New hires/temps sending calls to the wrong extension
Being over billed for long distance you never had (we have years of this)
Clients turned away because their money order wasn't in an envelope
Mail forwarding not done for 3 weeks
Front desk telling your clients you really aren't real as you have no real office
Front desk telling clients that Regus is just an answering service and we do not have an office there
Personal calls going to other clients within the building
Front desk confusing your phone number with another number and telling your clients you are no longer there and they have the wrong number and then do nothing for you. No apology... nothing!
Publishing the wrong address and having you pay for the changes on your letterheard, business cards, brochures, etc., then you will love Regus.
Retaliation? You decide...
I had been experiencing mail issues for over a year. The post office blamed Regus for not publishing and sharing the proper address with their tenants. I alerted the Regus local manager about the mail problem and was ignored. I was labeled a "problem" and could not understand why. I discovered that Regus liked to use a more impressive address and mail wasn't always an issue until the post office upgraded hardware and software randomly throughout the country. More to come...
Regus - HQ
I have to fund the reprinting of all cards, brochures, contracts etc. If Regus does not perform and you prefer they do, they may terminate your agreement! The time spent with all the new people was costly. I lost two clients due to Regus unprofessional handling of my front office.
5.12.09 - lost another client because Josalyn Ramirez instructed the front desk to tell our clients we were no longer there and have the wrong number! Watch out for this General Manager if you are leasing in at 8001 Irvine Center Drive.
When I notified Josalyn of the error she would not respond although at the center. Josalyn had confused numbers and even after alerting her of the error, she continued to harm our firm. It has been repeated issues like this that has been the catalyst for this site. If not for Marion, we would have lost more clients.
Concerns
Regus claims to reserve the right to change the "house rules" whenever they like. Beware. I am now fighting for costs to change all marketing material, cards, letterhead, brochures etc. Why, because Regus published it inaccurately and kept the address issue confidential for about 5 years and allowed many of us to suffer while trying to find our checks and mail.

Did you recently have to change your address? Regus sent a memo the end of 2007 and blamed the post office for an address update. Fact is, I discovered that Regus in Irvine, CA had been told for years that they had been using the wrong address. I personally feel that Regus is responsible for all expenses incurred by each client at 8001 Irvine Center Drive, Suite 400, Irvine, CA 92618.

Regus is also responsible for any issues that occurred as a result of the address being published inaccurately. Any mail returned leading to a default judgment, client loss, etc.

Do share holders know that several buildings involving potentially hundreds of people could lay claim to reimbursement?

I am now fighting to take the local number I was assigned and has my name in the phone directory. Be aware that Regus wll hold you hostage.

I can not get a copy of my contract or agreement. I have asked 11 times since the summer. They fax me someone else's agreement.

REGUS 8001 Irvine Center Drive 4.21.09 NO PHONES ANSWERED
Dial 949.754.4000 There is a recording. Happens often...

Regus Reply - We were having some technical difficulties with our phone system, but they are fixed now. Thank you for alerting us to this.
This has been occurring as long as i been there.

I had calls sent to other tenants. This was common enough even though I had instructions on where to send calls. New people are not always as careful or care. They are temporary!

Want to use the conference room? Think again. I quit having conferences as the turn over is great and the new hires do not know how to set up connectivity.

Do not worry about negotiating special pricing. Since "house rules" change, Regus changed all of my special conference pricing.

This isnt the image you want for your company. I was promised for a long time that things would change. If you ask for service you may be terminated. Obviously I learned alot and feel the need to share. Regus cost me money, a few clients and the image is not professional.You look virtual!
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
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#2 UPDATE EX-employee responds

Ex-CLIENTS CONFIRM: Regus Group and CEO Mark Dixon are totally corrupt

AUTHOR: Vanessa Parker - (U.S.A.)

Egregious Regus Unofficial Site
1000 locations. 450 cities. 75 countries. One call. NO SERVICE.
Regus Group and HQ Global Workplaces provide office space, virtual offices, meeting rooms, mailing addresses, receptionist and other services etc. The concept is to work smarter perhaps at a reduced cost. But at what real cost?

Here is the problem...

Regus terminated my agreement after several years with them. The area director, Michelle Prentiss, had promised to provide better service and stepped into assist with some issues at the center and unfortunately there was no resolution.

After paying for about half of my expenses related to Regus improperly publishing and issuing the innacurate address, they terminated the agreement thus leaving me to front the cost of changing my address again on everything just 8 months later!
Regus has a high turn over rate at the front desk If you enjoy:

Mail being returned due to improper address used by Regus (prior 4.08)
New hires constantly and/or temp personel
New hires/temps sending calls to the wrong extension
Being over billed for long distance you never had (we have years of this)
Clients turned away because their money order wasn't in an envelope
Mail forwarding not done for 3 weeks
Front desk telling your clients you really aren't real as you have no real office
Front desk telling clients that Regus is just an answering service and we do not have an office there
Personal calls going to other clients within the building
Front desk confusing your phone number with another number and telling your clients you are no longer there and they have the wrong number and then do nothing for you. No apology... nothing!
Publishing the wrong address and having you pay for the changes on your letterheard, business cards, brochures, etc., then you will love Regus.
Retaliation? You decide...
I had been experiencing mail issues for over a year. The post office blamed Regus for not publishing and sharing the proper address with their tenants. I alerted the Regus local manager about the mail problem and was ignored. I was labeled a "problem" and could not understand why. I discovered that Regus liked to use a more impressive address and mail wasn't always an issue until the post office upgraded hardware and software randomly throughout the country. More to come...
Regus - HQ
I have to fund the reprinting of all cards, brochures, contracts etc. If Regus does not perform and you prefer they do, they may terminate your agreement! The time spent with all the new people was costly. I lost two clients due to Regus unprofessional handling of my front office.
5.12.09 - lost another client because Josalyn Ramirez instructed the front desk to tell our clients we were no longer there and have the wrong number! Watch out for this General Manager if you are leasing in at 8001 Irvine Center Drive.
When I notified Josalyn of the error she would not respond although at the center. Josalyn had confused numbers and even after alerting her of the error, she continued to harm our firm. It has been repeated issues like this that has been the catalyst for this site. If not for Marion, we would have lost more clients.
Concerns
Regus claims to reserve the right to change the "house rules" whenever they like. Beware. I am now fighting for costs to change all marketing material, cards, letterhead, brochures etc. Why, because Regus published it inaccurately and kept the address issue confidential for about 5 years and allowed many of us to suffer while trying to find our checks and mail.

Did you recently have to change your address? Regus sent a memo the end of 2007 and blamed the post office for an address update. Fact is, I discovered that Regus in Irvine, CA had been told for years that they had been using the wrong address. I personally feel that Regus is responsible for all expenses incurred by each client at 8001 Irvine Center Drive, Suite 400, Irvine, CA 92618.

Regus is also responsible for any issues that occurred as a result of the address being published inaccurately. Any mail returned leading to a default judgment, client loss, etc.

Do share holders know that several buildings involving potentially hundreds of people could lay claim to reimbursement?

I am now fighting to take the local number I was assigned and has my name in the phone directory. Be aware that Regus wll hold you hostage.

I can not get a copy of my contract or agreement. I have asked 11 times since the summer. They fax me someone else's agreement.

REGUS 8001 Irvine Center Drive 4.21.09 NO PHONES ANSWERED
Dial 949.754.4000 There is a recording. Happens often...

Regus Reply - We were having some technical difficulties with our phone system, but they are fixed now. Thank you for alerting us to this.
This has been occurring as long as i been there.

I had calls sent to other tenants. This was common enough even though I had instructions on where to send calls. New people are not always as careful or care. They are temporary!

Want to use the conference room? Think again. I quit having conferences as the turn over is great and the new hires do not know how to set up connectivity.

Do not worry about negotiating special pricing. Since "house rules" change, Regus changed all of my special conference pricing.

This isnt the image you want for your company. I was promised for a long time that things would change. If you ask for service you may be terminated. Obviously I learned alot and feel the need to share. Regus cost me money, a few clients and the image is not professional.You look virtual!
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
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#3 UPDATE EX-employee responds

Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

AUTHOR: Mark_dixon_regusvictims - (U.S.A.)

I used to work for Regus and I have to concur that unfortunately, what is written on various Internet sites about the Regus Group and Mark Dixon is 100% true.

Please know that with the economy turning, the pressure on managers to gloss over key areas of the contract and then hide behind the fine print will increase. Previously, managers were allowed to discuss those fees. Most did, some did not. The explosion of complaints, I believe, is a direct result of the pressure they are now feeling to sell at any cost - customers be danged. Once you're in you're in and that is the stance that the company will take. I left after years with this company when I finally got tired of fighting against such practices, as have many other managers in the last 8-12 months. Sadly, many of the people who put customers first are no longer there. go to careerbuilder - they can't hire people fast enough to stop the bleeding. I count myself as one of the lucky ones having left early enough to escape the new initiatives that severely reduce incentives, encourage infighting and poor customer management. This company had the potential to be great but is being driven into the ground by fear and greed. If you need to sign a contract with a Regus/HQ building, please read the contract thoroughly and ASK ABOUT EVERY SINGLE FEE LISTED AND EVERY DEADLINE FOR RENEWAL. It appears more likely than not from the comments above that they will not review it and you will certainly end up paying for it. HQ was a great company once. It's sad to see what it's become.
>>>>>>>>>>>>>>
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#4 UPDATE EX-employee responds

Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

AUTHOR: Mark_dixon_regusvictims - (U.S.A.)

I used to work for Regus and I have to concur that unfortunately, what is written on various Internet sites about the Regus Group and Mark Dixon is 100% true.

Please know that with the economy turning, the pressure on managers to gloss over key areas of the contract and then hide behind the fine print will increase. Previously, managers were allowed to discuss those fees. Most did, some did not. The explosion of complaints, I believe, is a direct result of the pressure they are now feeling to sell at any cost - customers be danged. Once you're in you're in and that is the stance that the company will take. I left after years with this company when I finally got tired of fighting against such practices, as have many other managers in the last 8-12 months. Sadly, many of the people who put customers first are no longer there. go to careerbuilder - they can't hire people fast enough to stop the bleeding. I count myself as one of the lucky ones having left early enough to escape the new initiatives that severely reduce incentives, encourage infighting and poor customer management. This company had the potential to be great but is being driven into the ground by fear and greed. If you need to sign a contract with a Regus/HQ building, please read the contract thoroughly and ASK ABOUT EVERY SINGLE FEE LISTED AND EVERY DEADLINE FOR RENEWAL. It appears more likely than not from the comments above that they will not review it and you will certainly end up paying for it. HQ was a great company once. It's sad to see what it's become.
>>>>>>>>>>>>>>
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#5 UPDATE EX-employee responds

Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

AUTHOR: Mark_dixon_regusvictims - (U.S.A.)

I used to work for Regus and I have to concur that unfortunately, what is written on various Internet sites about the Regus Group and Mark Dixon is 100% true.

Please know that with the economy turning, the pressure on managers to gloss over key areas of the contract and then hide behind the fine print will increase. Previously, managers were allowed to discuss those fees. Most did, some did not. The explosion of complaints, I believe, is a direct result of the pressure they are now feeling to sell at any cost - customers be danged. Once you're in you're in and that is the stance that the company will take. I left after years with this company when I finally got tired of fighting against such practices, as have many other managers in the last 8-12 months. Sadly, many of the people who put customers first are no longer there. go to careerbuilder - they can't hire people fast enough to stop the bleeding. I count myself as one of the lucky ones having left early enough to escape the new initiatives that severely reduce incentives, encourage infighting and poor customer management. This company had the potential to be great but is being driven into the ground by fear and greed. If you need to sign a contract with a Regus/HQ building, please read the contract thoroughly and ASK ABOUT EVERY SINGLE FEE LISTED AND EVERY DEADLINE FOR RENEWAL. It appears more likely than not from the comments above that they will not review it and you will certainly end up paying for it. HQ was a great company once. It's sad to see what it's become.
>>>>>>>>>>>>>>
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#6 UPDATE EX-employee responds

Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

AUTHOR: Mark_dixon_regusvictims - (U.S.A.)

I used to work for Regus and I have to concur that unfortunately, what is written on various Internet sites about the Regus Group and Mark Dixon is 100% true.

Please know that with the economy turning, the pressure on managers to gloss over key areas of the contract and then hide behind the fine print will increase. Previously, managers were allowed to discuss those fees. Most did, some did not. The explosion of complaints, I believe, is a direct result of the pressure they are now feeling to sell at any cost - customers be danged. Once you're in you're in and that is the stance that the company will take. I left after years with this company when I finally got tired of fighting against such practices, as have many other managers in the last 8-12 months. Sadly, many of the people who put customers first are no longer there. go to careerbuilder - they can't hire people fast enough to stop the bleeding. I count myself as one of the lucky ones having left early enough to escape the new initiatives that severely reduce incentives, encourage infighting and poor customer management. This company had the potential to be great but is being driven into the ground by fear and greed. If you need to sign a contract with a Regus/HQ building, please read the contract thoroughly and ASK ABOUT EVERY SINGLE FEE LISTED AND EVERY DEADLINE FOR RENEWAL. It appears more likely than not from the comments above that they will not review it and you will certainly end up paying for it. HQ was a great company once. It's sad to see what it's become.
>>>>>>>>>>>>>>
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#7 UPDATE EX-employee responds

Ex-Employee confirms: Mark Dixon, CEO of Regus Group is a ice cold scammer!

AUTHOR: Mark_dixon_regusvictims - (U.S.A.)

I used to work for Regus and I have to concur that unfortunately, what is written on various Internet sites about the Regus Group and Mark Dixon is 100% true.

Please know that with the economy turning, the pressure on managers to gloss over key areas of the contract and then hide behind the fine print will increase. Previously, managers were allowed to discuss those fees. Most did, some did not. The explosion of complaints, I believe, is a direct result of the pressure they are now feeling to sell at any cost - customers be danged. Once you're in you're in and that is the stance that the company will take. I left after years with this company when I finally got tired of fighting against such practices, as have many other managers in the last 8-12 months. Sadly, many of the people who put customers first are no longer there. go to careerbuilder - they can't hire people fast enough to stop the bleeding. I count myself as one of the lucky ones having left early enough to escape the new initiatives that severely reduce incentives, encourage infighting and poor customer management. This company had the potential to be great but is being driven into the ground by fear and greed. If you need to sign a contract with a Regus/HQ building, please read the contract thoroughly and ASK ABOUT EVERY SINGLE FEE LISTED AND EVERY DEADLINE FOR RENEWAL. It appears more likely than not from the comments above that they will not review it and you will certainly end up paying for it. HQ was a great company once. It's sad to see what it's become.
>>>>>>>>>>>>>>>
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#8 UPDATE EX-employee responds

Regus staves off bankruptcy with 57m UK disposal

AUTHOR: Vanessa Parker - (U.S.A.)

Regus staves off bankruptcy with 57m UK disposal
By Liz Vaughan-Adams
The cash-strapped provider of serviced offices Regus sold a controlling stake in its UK business yesterday in a last-ditch effort to raise money to ensure it stays afloat.
The company is selling 58 per cent of its UK business for a maximum of 57m to Rex 2002, a new company set up by the venture capital firm Alchemy.
Regus said it believed the deal was the only option left on the table and warned that unless it was completed by the end of the year, as expected, "parts of the Regus Group will be unable to trade, which is likely to result in the appointment of the administrators".
"This was a deal we had to do," said Mark Dixon, the chief executive. "We are selling the crown jewels here, we can't deny that. The UK business is our most established business, it's our most profitable business, it's the best cash-flow producer."
The company's UK operation, which has a workforce of 556, made an operating profit of 13.6m in the first nine months of the year, on sales of 129.4m.
Regus warned yesterday that it would have faced a 6m shortfall later this year were it not for the disposal of the 58 per cent stake in that business to Alchemy. Shares in the company closed down 6 per cent at 14.5p.
The company does not have any overdraft or debt facilities to bridge that shortfall and admitted yesterday that none of the banks or potential lenders it approached were prepared to help.
It said that providing it made revenues of more than 270m in 2003 and provided the disposal to Alchemy went through, it thought it had sufficient working capital for the next 12 months.
It is now also working on plans to sell non-core assets as well as to restructure its loss-making businesses, particularly in the United States, to improve its finances.
But the company warned that it expected pricing to remain under pressure "at least for the foreseeable future" and said it expected turnover to be "down fractionally" in the first quarter of next year.
Regus' advisor, NM Rothschild, said Regus was in "severe" financial difficulty and warned that it would not be able to meet its obligations unless the sale went through in time.
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#9 UPDATE EX-employee responds

'Hotdog hero' hits hard times: Regus chief executive Mark Dixon faces an uncertain future as the US arm of his company files for bankcruptcy!

AUTHOR: Vanessa Parker - (U.S.A.)

'Hotdog hero' hits hard times
Regus chief executive Mark Dixon faces an uncertain future as the US arm of his company files for bankcruptcy, writes Mark Tran


Mark Dixon, chief executive of Regus, put his finger on the problem that has bedevilled his office rental company since boom turned to bust in the US.

"The reason we are trading poorly," he said, "is largely a result of us having too much space and at too high a rent on the west coast of America, where the market has been affected very badly by the technology slump."

Only three years ago, Mr Dixon - who left school at 16 and once sold hotdogs - was singing the praises of the US, saying it was a wonderful place to do business. But that was before the hi-tech bubble burst, pushing the world's largest economy into recession.

The downturn left the US market with a glut of office space and threatens to force to Mr Dixon to hang up a for-sale sign. But Mr Dixon insists that he is not bailing out of the US. The operations are to be restructured, not scrapped, and no wholesale closures are planned.

The odds are against him.

Filing for bankruptcy in the US is the latest twist of the knife for Regus. Last month it sold a majority stake in its only profitable business to a venture capitalist. Alchemy Partners agreed to pay 51-57m for 58% of Regus's UK division, depending on performance.

At the time, Mr Dixon, who holds a 64% stake in the company, admitted that he was selling off the "crown jewels". Now other venture capitalist firms are circling.

The US venture capital firm, Indigo Capital, has said it was considering a bid, although it is under scrutiny from the financial services authority (FSA) for possibly issuing misleading statements over its shareholding.

Should Regus be swallowed up by someone else, it will mean a huge setback for Mr Dixon, who hit upon the idea of providing office space with all the trimmings - from photocopiers to toilets - for businesses.

Mr Dixon hit upon the idea during a trip to Brussels when he noticed the large number of international business people working from their hotel rooms.

He decided to introduce the American business centre concept to Europe to take advantage of a shift in working patterns, with companies requiring flexible office space and services. His first office rental overlooked Brussels' Stephanie Square, in 1989.

Regus was actually founded in the UK by John Wheeler, who had the same idea as Mr Dixon. Mr Dixon approached Mr Wheeler and suggested joining forces. Then Regus's Swedish backers, Reinhold, collapsed. Mr Dixon bought Regus from the receivers, with the help of 800,000 from the sale of his Dial-A-Snack business.

Regus became one of the world's fastest growing companies, expanding into the US and Asia, and employing almost 3,000 people. It provided fully equipped offices equipped with high speed internet access and high-quality furniture.

The world's biggest company of its kind, Regus boasted a global network of over 420 full-service business centres with 92,000 workspaces in 51 countries, located in modern and prestigious buildings.

The accolades followed. In 1999, Mr Dixon was named Ernst & Young entrepreneur of the year, while the Sun complimented him on being a "top geezer" and a "hotdog hero".

The expansion into the US proved to be Regus's undoing. At first business took off. It then fell off a cliff when the US economy went into reverse. Regus made the classic mistake of jumping into a hot market just as it was about to go cold.

Floated on the London stock exchange and Nasdaq in the US in 2000 at a value of 1.5bn, Regus shares peaked at 392p during the hi-tech boom. Now Regus shares fetch about 21p, giving the company a market value of just 126m - and shares have actually gone up this year because of takeover speculation.

Should Regus be bought up or go bust, Mr Dixon, who is only 43, can be expected to be looking around for other business opportunities. Three years ago, Mr Dixon claimed he would start over again if he went bankrupt.

"Definitely, I wouldn't hesitate - I wouldn't miss a day," he said in an interview. That day might come round sooner than he had anticipated.

Guardian News & Media

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Mark Dixon: the Briton who wants to build a new Google
Mark Dixon, chief executive of Regus, made his fortune supplying serviced offices and he has his sights set on creating a world-leading company.

By Andrew Cave
Published: 9:00PM BST 25 Apr 2009
What does a man do when he has lost half a billion pounds, been trashed by the City and gone through an expensive, high-profile divorce?
For Essex burger-flipper turned Monaco-based tycoon and tax exile Mark Dixon, simply rehabilitating Regus the outsourced offices provider whose US business crashed into Chapter 11 bankruptcy protection during the dotcom bust wouldn't be enough. Neither would taking the group into the FTSE 100 index a task that would need it to roughly double its 700m market capitalisation.
What Mr Dixon, the son of an engineer and owner of 40pc of the company, really wants is to "build the next Google or Microsoft".
Is he serious? You bet. "Whatever I achieve, I get a second of light when I achieve it, but then I want to get on and do the next thing," he said. "Regus at some point in the future will be an important global business. I want the business to be accepted and for people to talk about it like they talk about Google and Microsoft: companies that provide tools that they can use. That's what we want: for our customers to say: 'Yes. I really get value from that.' "
This inveterate need to prove himself is what led Mr Dixon, 49, to leave school at 16, starting Dial-a-Snack to make sandwiches which he delivered on a butcher's bike. The business was not a success "Customers loved it but no one told me you had to make a margin" and he ended up travelling the world, paying his way by working in restaurants and selling encyclopaedias.
On his return, he invested 600 in a burger van and began selling hot dogs, buying seven other vans in Essex before ploughing his 10,000 savings into setting up The Bread Roll Company, which he sold in 1988 for 800,000.
He moved to Brussels and had a flat-rental firm before he spotted businessmen holding meetings around coffee tables in hotels, saw the potential for providing desks for executives on the move and set up Regus in 1989. When he floated the business in October 2000, it was valued at 1.5bn. Six months later, it was worth 2bn and Mr Dixon's 60pc stake at the time made him a billionaire.
Now he's tending to his ninth business, the Chateau de Berne vineyard in Provence, which he bought a couple of years ago.
"I enjoy what I do and my businesses are also my hobby," he said. "Wine is my weekend job. I'm one of the leading producers of Cote de Provence rose. We produce about 600,000 bottles of wine, mostly ros the stuff you drink when you're sitting on the beach. I also do about 35 tonnes of olive oil a year."
Does he really still need to prove himself, seven years after the Chapter 11 filing and the sale of a majority stake in Regus's British operations to venture capital firm Alchemy Partners? "Of course I do. Not to the City, though. I am driven more personally. I am not worried by what people think."
Regus suffered in the last economic downturn because its easy terms for flexible short-term office or desk rental were highly attractive to dotcom entrepreneurs, who fled en masse when the boom turned to bust. Mr Dixon said the company had also over-expanded in the US and calls the Chapter 11 episode a "near-death experience."
In the UK, the shares, floated at 260p, hit a low of 3p, valuing Mr Dixon's stake at less than 80m.However, within a year Regus was able to buy HQ Global, its American rival, for 164m. Regus now has full control of its UK business and increased group pre-tax profits by 25pc to 149m last year.
It now has cash of more than 200m and no debt, 171,277 desks at 1,000 office centres and gets 40pc of its revenues from the US. Last year it redomiciled for tax reasons and is now incorporated in Jersey and resident in Luxembourg.
Now more storm clouds are gathering, with dire conditions in the commercial property market and spiralling levels of business failures, but Mr Dixon claims to have reinvented Regus's business model to make the company more recession-resilient.
He says 65pc of Regus's offices are leased through partnership profit-sharing deals with property owners, which give less exposure to long leases and empty properties.
BusinessWorld, a members' club launched last summer that Mr Dixon describes as offering "Oyster cards for offices", has signed up 200,000 members who pay monthly subscriptions in return for desk-days at Regus's sites. Average occupancy of Regus's office space increased slightly to 82.9pc last year.
"We're not in the risk-taking business. We're an operator," Mr Dixon said. "We've got a brave new world of products that are really touching a nerve with the business world now, based on the ability to cut a business's costs.
"You could be someone made redundant in the City. You don't want to sit at home in Essex. You buy one of these cards, pop up to London and you've got a place to sit. Or you could be a very large corporate that's looking to take out costs." Regus also offers a deal that gives unlimited access to business lounges providing free wi-fi internet connections and tea and coffee for 17 a month. "They're like airport lounges, said Mr Dixon. "You're not allowed to sit there and camp out. It's there for occasional use. These are great recession products.
"This time, we're prepared. We're not going to be so badly affected. Last time, we were an immature business. The business had doubled in size every year for the previous 10 years so the average age of the centres was under two years.
"Now the average age of our centres is nine years. We're starting from a very strong base and trying to hold it. The next two or three years is going to be all about value. It's the Ryanair and easyJet world. You've got to be focused on the cost for your customers."
Mr Dixon doesn't underestimate the severity of the challenge ahead.
"I've been in business for 34 years and never seen anything like this," he said. "But our relationship with landlords is symbiotic. If there were to be a problem I believe people would work together. It's not a time for conflict.
"We have 400,000 customers. It's taken us 20 years to get that but we've got the best distribution that landlords can possibly touch, and we're in 75 countries and will add 10 more this year. We're just opening up in Honduras, Paraguay, Senegal and Mauritius."
The tough times, including his 28.7m divorce settlement in 2005 with ex-wife Trudy, the mother of two of his five children, clearly still hurt deeply.
"Going through the reconstruction, the humiliation and the damage to value and everything else, I class that as a rite of passage," he said. "It's difficult at the time but you get on with it. I didn't spend time sitting crying into my soup. You just work a lot more hours in the day. You don't have time to worry about what everyone is saying.
"My rite of passage has made me into a better business person. I'm more rounded and I've aged a bit. I'm a lot more mature.
"I'm a completely different person from last time around. I take a lot less risk. But we've not only got to fight the recession, we've got to get rehabilitated. We've vowed to leave the emergency ward and not go back.
"If you disappoint the market badly, as we did, it takes years and years to recover. We're doing it. We'll be in the doghouse for as long as it takes."
MARK DIXON CV
Family: Divorced with four daughters and one son
Houses: Connecticut, Provence, Monaco
Interests: Sailing, wine-making, tennis and collecting old trucks
On burgers: "I still occasionally meet people who bought hot dogs from me. It's a great business but you work all night and smell of onions all day."
On tax: "I pay some tax here. I'm only in the UK 45 to 60 days a year. I spend my life on a plane."
On films: "My favourite is The Godfather - it's all about honour and business, although it's not the sort of business we do."
On Cars: "I drive a Range Rover but I don't really do cars. I do old trucks. I have a 1971 Toyota and an old Citroen."
On reading matter: "You'll laugh but I'm reading The Great Crash by JK Galbraith and a book about Julius Caesar. I also love Private Eye and no, I don't think I've ever been in it."
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#10 UPDATE EX-employee responds

THE REGUS GROUP IS A 100% SCAM OPERATION!!! - HERE IS WHAT OTHER CLIENTS & EX-EMPLOYEES ARE SAYING ABOUT REGUS! STAY AWAY FROM THESE SCAM ARTISTS

AUTHOR: Vanessa Parker - (U.S.A.)

THE REGUS GROUP IS A 100% SCAM OPERATION!!! - HERE IS WHAT OTHER CLIENTS AND EX-EMPLOYEES ARE SAYING ABOUT THE REGUS GROUP! STAY AWAY FROM THESE SCAM ARTISTS!

I can confirmed the validity to the previous post, every single word is true. My lease ended 10/31/2008 and in the last week I recieved and invoice from Regus (Indianapolis, In.) for $850.00 of whch there was no listing or breakdown of why I was receiving this invoice...Just a single unidentified dollar amount. When I called the office, Ispoke with the billing person who did a very poor job of helping me identify the full breakdown of the invoice. After concerted effort I was able to identify phone, mail, covered the fees over a 3 month tranistionary fee...Upon further complaint, the general manager called me today and of course reminded me that this transitionary fee is well represented in my contract that I signed 12 months ago. And of course I contend that at no time in dealling with the office manager at the initial signage of the contract or my exit conversations did this transitionary fee be expressed of discussed to me which I find non-discloser a fraudulant act and places Regus in my opinion as a SCAMMER...I plan to pursue this to and end and want all to know that Regus in my cased misrepresented their contract and service.

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I think the Regus people are all talk and all sleeze. I had an office at Regus on Rt 128 near Boston. My company paid a lot for it, but i needed a place to work away from two small kids in between sales travel.
Thru word of mouht I found another executive suites, Highland-March, in Westborough. I really liked th e space and the peaople there a lot and it was much closer to home, so i put in my 3 month notice at Regus. I began working out of Highland-March right away on a day-to-day basis. The staff there was fabulous and the price was almost half of what Regus charged. Really top-notch people.
So here's the catch: I hadn't shown up at Regus for about 5 weeks, but I still had 6 weeks to go on my contract and my comapny was still paying the (outrageous) monthly fees. Well, I go to my office, unlock the door--and there is someone else working there!! They had taken all my stuff and put it in boxes in storage there, and sold my office right out from underneath me--and I was still paying for it!
I will never-ever use Regus again.


Our company was opening a new office in Nashville, TN, and we had been searching for a small office space to accommodate our two employees. While doing research, we came across the Regus Group, offering us an all-inclusive package in one convenient monthly bill. This was an ideal plan for us. We began our relationship with Regus in October 2008, and after just one month, we were highly disappointed. We began seeing charges for services that were priced much higher than the area average. Getting in touch with the General Manager at that location was nearly impossible. Emails were sent and phone calls placed, and were not returned for days when there was an urgent need for a response. After being disappointed in so many ways, we decided to terminate our relationship with Regus, and move to the private sector where terms were a bit better, and the bills would be more manageable. We received our final bill from Regus, and saw charges that we never agreed to pay. Regus wanted to charge us a Business Continuation fee, which, when looking over the T&C, there was nothing specified that we would be charged for something like that. We had no qualms about paying an exit fee, as this is standard, but we were charged an exorbitant amount. While we could have paid a cleaning service somewhere in the amount of $75.00 to clean the office, Regus charged us more than double that price. We felt really let down by Regus, and will never do business with them again, nor refer anyone to their offices.



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Does anyone know if you sign an agreement with Regus and your company goes bankrupt, can they come after you personally? I realize that any responses should be validated by an attorney, etc.

I re-newed my Regus deal 8 months ago after a 6 month contract, then the economy drove my business into the duldrums. I gave notice in February that I was going to vacate and vacated in March. I paid March rent but sent in 2 secret shoppers in late March. They were NOT shown my space. I am a sole proprietor and the agreement was signed in the company's name and written in the company's name. There is NO personal gurarantee on the agreement. I offered them a 75% buyout and they said no. Anybody else experience anything like this?

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We moved into Regus HQ in Tulsa, OK in Nov. 2006. The whole time we rented our office space there they seemed to come up with misc. charges for all kinds of things. When we moved out they charged us $2000 and they couldn't tell us what all the charges were even for! And then put a late charge on our bill while they were taking forever to research what our charges were. Here we are, 5 months after we moved out, and we just received ANOTHER invoice for postage and supplies from our "Business Continuation" fee that we were unaware of when we signed the contract. This is a charge for them to forward your mail (You don't have a choice, all the mail that comes is listed as one suite, so you can't intercept @ the post office) not only do they charge to forward your mail, they charge YOU for the postage and supplies that they use. Now we are paying $200 on a $35 postage charge because they slapped two late fees after not billing us on time. Oh, did I mention, it's 5 months later and we haven't received our deposit back from when we moved in?? I would NEVER recommend Regus/HQ to anyone.


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THIS POST IF FROM AN EX-EMPLOYEE OF THE REGUS GROUP/HQ MANAGEMENT GROUP. IF THIS IS NOT ENOUGH WARNING FOR ANY CLIENT TO STAY AWAY FROM THESE SCAM OPERATORS, THEN WE DO NOT KNOW WHAT IS?

I used to work for Regus and I have to concur that unfortunately, what is written above is true. Please know that with the economy turning, the pressure on managers to gloss over key areas of the contract and then hide behind the fine print will increase. Previously, managers were allowed to discuss those fees. Most did, some did not. The explosion of complaints, I believe, is a direct result of the pressure they are now feeling to sell at any cost - customers be danged. Once you're in you're in and that is the stance that the company will take. I left after years with this company when I finally got tired of fighting against such practices, as have many other managers in the last 8-12 months.

Sadly, many of the people who put customers first are no longer there. go to careerbuilder - they can't hire people fast enough to stop the bleeding. I count myself as one of the lucky ones having left early enough to escape the new initiatives that severely reduce incentives, encourage infighting and poor customer management. This company had the potential to be great but is being driven into the ground by fear and greed. If you need to sign a contract with a Regus/HQ building, please read the contract thoroughly and ASK ABOUT EVERY SINGLE FEE LISTED AND EVERY DEADLINE FOR RENEWAL. It appears more likely than not from the comments above that they will not review it and you will certainly end up paying for it. HQ was a great company once. It's sad to see what it's become.

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Regus asked for nearly $3600 in security deposit for a 3 month contract. Mark Green, the incompetent manager at 5 Penn Plaza assured me that every single penny would be returned. In mid-March, I upgraded my office from a $1200/month room to $2100/month room. During my upgrade, Mark Green told me that he would waive any fees associated with the upgrade.

To my surprise, I received a $2400 bill for the month of March (I expected to receive a $1650 bill since I moved mid-march). I asked Mark Green what had happened. He told me that he wasn't sure, but that he had spent two hours last night adjusting my bill the nightmare had begun.

When Mark Green was unable to resolve my bill on April (after coming back with many excuses that he didn't have time to look over my bill), I told him that since my 3 month contract would come to an end on May 1st, I was prepared to leave if he cannot deal with my bill.

Mark Green, frustrated at his lack of understanding of his own company's billing system, delegated his duty to Cathy DeFrenza, another manager who didn't understand her own company's billing system. Cathy assured me that she was prepared to resolve my bill that same day. I was very happy to hear that.

Of course, Cathy disappeared. She was on jury duty for over two weeks. After contacting Mark Green to ask what had happened, I was repeatedly told that Cathy would give me a call. Cathy never did. On June 1st, Mark Green told me that he was no longer in charge of my bill and that the responsibility had been elevated to Regus corporate headquarter.

I called Regus corporate headquarter and another employee who had no idea why Mark Green had forwarded this information answered my call. She informed me that I was being charged a $1000 business continuation fee and that my security deposit will not be returned until I've resolved my account. There was no hope left. I had no one to speak to about my overcharged bill on the month of March. Regus also charged me $300 wear and tear fee for an office I had used for three months. The office was practically brand new when I left

So here's my advice: don't go to Regus if you want an honest billing system. I found that there are much better offices with windows (mine had none). If you put in $3600 security deposit, know that you will probably get $1000 back or NOTHING AT ALL.

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I confirm this as well. I was a fool and signed two agreements with them. The first was for an office for $600 a month. *I never paid less than $1200* for that lease. At the end, I was hit with an $800 virtual continuation feel. I then really needed an office for reasons that don't matter, so I signed a 3 month contract for $205 a month for basically a broom closet. It turned into a 4 month contract because they don't count partial months as part of the terms and of course I never paid less than $525 a month for that lease. I had to extend it once and of course went for an extra 4 months instead of three. Well, After the 5th month I moved to a more traditional office and figured I'd just cancel the extra phone and internet charges and just eat the $205 fee for the rest of the lease. They told me that I couldn't cancel the phone or internet and it was in my contact! I was so disgusted I haven't even looked at the contract again to see what rabbit they're pulling out of their hat (like the virtual continuation). I figured the hell with them and I'll never ever do business with them again.

OH! My lease is paid via credit card. Well, last month (my LAST month w/ them ever, thank god), my credit card was declined. They charged me a credit card declined fee!!! hahaha have you ever heard of such things!! These people have some nerve to say the least.
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I confirm this as well. I was a fool and signed two agreements with them. The first was for an office for $600 a month. *I never paid less than $1200* for that lease. At the end, I was hit with an $800 virtual continuation feel. I then really needed an office for reasons that don't matter, so I signed a 3 month contract for $205 a month for basically a broom closet. It turned into a 4 month contract because they don't count partial months as part of the terms and of course I never paid less than $525 a month for that lease. I had to extend it once and of course went for an extra 4 months instead of three. Well, After the 5th month I moved to a more traditional office and figured I'd just cancel the extra phone and internet charges and just eat the $205 fee for the rest of the lease. They told me that I couldn't cancel the phone or internet and it was in my contact! I was so disgusted I haven't even looked at the contract again to see what rabbit they're pulling out of their hat (like the virtual continuation). I figured the hell with them and I'll never ever do business with them again.

OH! My lease is paid via credit card. Well, last month (my LAST month w/ them ever, thank god), my credit card was declined. They charged me a credit card declined fee!!! hahaha have you ever heard of such things!! These people have some nerve to say the least.

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Global Workplaces/Regus Group Complaints
Fraud, Employee Theft of Identity


HQ Global Workplaces/Regus Group



Fraud, Employee Theft of Identity

I recently returned from my military mission in Iraq as one of the thousands USA soldiers and thankful to be joined again with my family, but worried about how I would support them. I borrowed $1350 from a loved one and then went to add the funds to my bank account. Within minutes, I discovered that a company named HQ Global Workplaces had charged my account $326.00. When I called my card company to inquire and dispute the charges, they suggested I first call the merchant. When I called the merchant (HQ Global Workplaces) they informed me that they had charged my card because someone using a different name other than mine, had ordered some type of virtual office service. They refused to refund the money to my card even though I told them that I was not the one who made the transactions. I offered them proof of my identity and even offered to send them a photocopy of my id and my credit card to show that the name on my card is not the name that was used to make the transaction. I also offered to provide them with I had just returned from the military and could not have possibly made the transaction. I will unfortunately have to spend more time and money in taking them to court 'but in the meantime, I still am out of $1350 and my rent is due.

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It has been reported through various reliable sources and ex-Regus clients as well as ex-employees that the REGUS GROUP/HQ MANAGEMENT GROUP is under criminal investigation for fraud, stealing of clients funds, non-delivery of services and falsification of documents. The list of client and ex-employee complains is getting longer everyday.

Should you consider using their office services THINK TWICE before you part with your money. These international scam artists will do EVERYTHING not to deliver their services after they collected your payments.

It further appears that the Regus Group will be filing for bankruptcy very soon, due to the fact that thousands of customer payments have been collected but clients have not seen any professional services in return.

Their global network looks at the first glance impressive, however the small prints in their contracts are so clever written that even if they do NOT deliver the office services as contractually agreed on, the client is left hanging in the air' without any possibility to receive his money refunded.

The Regus managers in charge are suddenly un-available to solve any problems and the client is dragged over the floor for months with excuse letters but no improvement of service takes place. Cancellation of contracts are simply ignored and requests refunds due to breach of contract by the Regus Group are ignored too.

Instead the client receives invoices for services he never ever ordered or signed for. Or invoices are sent from the Regus Group, which are dated months before the service contract was even signed. This is outright fraud and the therefore this scam operation must be stopped immediately.

DO NOT PAY THEM ANY MONEY IF YOU DON'T WISH TO BE THE NEXT VICTIM. THERE ARE FAR MORE PROFESSIONAL COMPANIES OUT THERE WHO WILL GLADLY OFFER YOU THEIR SERVICES AND THEY DO DELIVER!

IF YOU HAVE EVER DEALT WITH REGUS AND YOU FEEL THAT YOU ARE A VICTIM TOO, please contact our Investigative Journalist Team.
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#11 UPDATE Employee

REGUS GROUP/HQ MANAGEMENT GROUP IS A GLOBAL SCAM OPERATION! UNDER INVESTIGATION FOR FRAUD

AUTHOR: Vanessa Parker - (U.S.A.)

It has been reported through various reliable sources and ex-Regus clients that the REGUS GROUP/HQ MANAGEMENT GROUP is under criminal investigation for fraud, stealing of clients funds, non-delivery of services and falsification of documents.

Should you consider using their office services THINK TWICE before you part with your money. These international scam artists will do EVERYTHING not to deliver their services after they collected your payments.

It further appears that the Regus Group will be filing for bankruptcy very soon, due to the fact that thousands of customer payments have been collected but clients have not seen any professional services in return.

Their global network looks at the first glance impressive, however the small prints in their contracts are so clever written that even if they do NOT deliver the office services as contractually agreed on, the client is left hanging in the air' without any possibility to receive his money refunded.

The Regus managers in charge are suddenly un-available to solve any problems and the client is dragged over the floor for months with excuse letters but no improvement of service takes place. Cancellation of contracts are simply ignored and requests refunds due to breach of contract by the Regus Group are ignored too.

Instead the client receives invoices for services he never ever ordered or signed for. Or invoices are sent from the Regus Group, which are dated months before the service contract was even signed. This is outright fraud and the therefore this scam operation must be stopped immediately.

DO NOT PAY THEM ANY MONEY IF YOU DON'T WISH TO BE THE NEXT VICTIM. THERE ARE FAR MORE PROFESSIONAL COMPANIES OUT THERE WHO WILL GLADLY OFFER YOU THEIR SERVICES AND THEY DO DELIVER!


IF YOU HAVE EVER DEALT WITH REGUS AND YOU FEEL THAT YOU ARE A VICTIM TOO, please contact our Investigative Journalist Team.
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