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WeWork to Dump 35 NYC Office Leases After Bankruptcy Filing
WeWork has filed for Chapter 11 bankruptcy protection, a significant downturn for the office-sharing company that once enjoyed Wall Street’s favor and aimed to revolutionize the global workplace.
WeWork intends to reduce its debt and evaluate its commercial office lease portfolio through a restructuring support agreement with the majority of its stakeholders. The company also seeks the ability to reject leases for certain mostly non-operational locations, leading to the termination of almost 70 leases, including 35 in New York City, with 34 in Manhattan and one in Brooklyn.
The filing is another setback for landlords, many of whom had accepted reduced rents from WeWork in recent years. The pandemic, coupled with the increasing acceptance of remote work, has created challenges for the co-working company.
- ◦Lease
