A recent bankruptcy petition has revealed that coworking company WeWork is facing a staggering $98.6 million in unpaid rent, lease termination fees, and related litigation owed to landlords. The filing also discloses the company’s liabilities of $10 billion to $50 billion, despite once being valued at an impressive $47 billion with backing from SoftBank.
The bankruptcy filing pertains only to WeWork’s locations in the U.S. and Canada. Among the top creditors listed is a venture of Wilmette-based real estate firm led by Michael Alter, owner of WNBA team Chicago Sky.
Alter Group has taken legal action against WeWork for terminating its 175,000 square-foot lease at 20 W. Kinzie Street nearly ten years early and seeking damages totaling $11.9 million for lease termination fees and associated litigation costs. Additionally, WeWork’s location at 125 South Clark Street is included on their list of leases they are requesting be rejected by the bankruptcy court.
This news highlights how even established companies can face financial struggles due to unforeseen circumstances such as global events or mismanagement.
