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Knotel Files for Bankruptcy as Pandemic Strains Office Rentals

Submitted by jhartgen@abi.org on

Knotel has filed for chapter 11 protection in Delaware court after the WeWork rival was pressured by the coronavirus, Bloomberg News reported. The company, which manages and rents short-term office space, has had to grapple over the past year with companies and governments mandating that workers stay at home. It listed both estimated liabilities and assets of $1 billion to $10 billion. The company has obtained debtor-in-possession financing from an affiliate of Newmark of about $20 million in cash. In March of last year, New York-based Knotel said it was cutting or furloughing half of its staff, or about 200 workers, in response to the coronavirus.