In The Loop: Landlords Suing Flexible Workspace Operators And More Industry News

Breather and Knotel are both facing lawsuits for unpaid rent.

Breather Sued by Landlord

The Commercial Observer reported this week that “the landlord for Breather’s outpost at 336 West 37th Street sued the flex office company for missing nearly $91,000 in unpaid rent.” The lawsuit was filed on Monday of this week and according to court records, Breather has failed to pay rent since April. Breather is the latest of various flexible workspace operators facing lawsuits from landlords due to unpaid rent. The flexible workspace company has been struggling since before the pandemic; Breather let go of 17% of its staff in December of last year. 

RXR Sues Knotel for Unpaid Rent

Crain’s New York reported this week (paywall) that RXR Realty is the latest landlord to sue Knotel over unpaid rent. According to reports, RXR Realty’s suit is for around $1.1 million in unpaid rent for Knotel’s 61 Broadway location. Knotel’s lease with RXR Realty, which was signed two years ago, is for 11 years. Knotel has been hit with over 20 lawsuits this year over unpaid rent in New York, Los Angeles, and Atlanta. 

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Serendipity Labs Files for Bankruptcy

Serendipity Labs is moving forward with bankruptcy proceedings. According to reports, the filing “follows a July petition by the company to use the Small Business Reorganization Act (SBRA) to restructure its corporate level senior debt as part of an expansion of the SBRA eligibility criteria under the CARES Act.” The bankruptcy filing details the approval of the sale of Serendipity Labs, Inc.’s assets through an auction process that will be held in March 2021. Earlier this year, the flexible workspace provider announced continued expansion, however the coronavirus pandemic significantly impacted the company, as well as investor trust in the flexible workspace industry. 

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