The owner of 21-33 Irving Place in Manhattan is suing WeWork aiming to terminate a lease on the property. Signed in 2016, the lease was backed by a guaranty that WeWork’s holding company was worth more than $150m. In an email sent to tenants and posted online, the landlord said it had been “forced into this position due to our inability to pay rent for over two years”. The case signals growing unease among WeWork stakeholders prompted by news flow since the company filed for its IPO according to The Real Deal.
The owner of 21-33 Irving Place in Manhattan is suing WeWork aiming to terminate a lease on the property. Signed in 2016, the lease was backed by a guaranty that WeWork’s holding company was worth more than $150m. The landlord claims they were notified in June that as a result of a reorganisation of the company, the lease was now backed by a new entity known as WeWork Companies LLC, and that recent financial reports in the media cast doubt on the viability of this entity and whether the substitute backer has a network of $150m or more. The case signals growing unease among WeWork stakeholders prompted by news flow since the company filed for its IPO according to The Real Deal.