WeWork, once a highly favored office-sharing company with the goal of revolutionizing the global workplace, has recently filed for Chapter 11 bankruptcy protection. This move comes as a significant downturn for the company and its previous success on Wall Street.
In an effort to reduce debt and restructure its commercial office lease portfolio, WeWork has entered into a restructuring support agreement with majority stakeholders. As part of this agreement, they also plan to reject leases for mostly non-operational locations resulting in the termination of nearly 70 leases. Among these are 35 in New York City alone – including 34 in Manhattan and one in Brooklyn.
This filing is yet another setback for landlords who have previously accepted reduced rents from WeWork over recent years. The current pandemic situation coupled with an increasing acceptance of remote work has presented challenges for this co-working giant.
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