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Bankruptcy Filing Shows Chicago Firm Among WeWork’s Largest Creditors
According to details unveiled in a bankruptcy petition, coworking company WeWork owes landlords at least $98.6 million in unpaid rent and fees. The company, once valued at $47 billion and backed by SoftBank, reported liabilities ranging from $10 billion to $50 billion, according to the filing.
The bankruptcy filing is limited to WeWork’s locations in the U.S. and Canada. Coming in as the second-highest on a long list of creditors is a venture of Wilmette-based real estate firm, The Alter Group, led by Michael Alter, an owner of the WNBA’s Chicago Sky.
Alter Group has sued WeWork, claiming $11.9 million in lease termination fees and related litigation costs after the coworking company terminated its 175,000 square-foot lease at 20 W. Kinzie Street nearly ten years early. WeWork’s 125 South Clark Street location was also part of the large list of leases the company is asking the bankruptcy court to reject.
