WeWork’s own Manhattan headquarters is the latest location to get the ax in its bankruptcy restructuring.
The coworking company said in a bankruptcy filing Monday that it intends to reject its 300,000 square foot lease at Kato International’s Tower 49 — one of its largest locations — on May 31, Bisnow reported.
“Our intention is to stay in as many buildings as possible under economic terms that position all parties for a sustainable future,” a WeWork spokesperson told the publication. “Unfortunately, after extensive conversations, we have been unable to reach a deal regarding our operations at Tower 49 that would enable us to successfully operate the building for the long term.”
WeWork has 2,800 members at the location at 12 East 49th Street, that it will try to relocate as the company consolidates its portfolio. The firm first signed a lease at the tower in 2016 when it took about 160,000 square feet across 10 floors.
WeWork is targeting about $8 billion in rent savings, looking to close about 150 locations and hold onto another 150. It has also reached agreements with 92 percent of its secured-note holders to clear more than $3 billion in debt obligations. The company plans to exit bankruptcy next month.
In the meantime, a familiar face is trying to purchase the company. WeWork founder Adam Neumann has launched a bid to buy the company for $650 million. Neumann has alleged that WeWork refused to move forward with negotiations, and said the company could end up in bankruptcy once again.
–Rich Bockmann
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