Despite its numerous lawsuits piling up, flexible office operator Knotel has raised more funding.
During a virtual all-hands meeting this week, Knotel CEO Amol Sarva informed staff that the firm had secured funding. While the amount raised nor the source of the capital was revealed, a source described it as a restructuring deal by insiders that involved debt and equity.
Sarva revealed that the company raised $10 million in July and was seeking to raise $100 million by the end of August. However, the company did not announce any fundraising following that time.
Prior to the pandemic, Knotel suffered from millions of dollars in unpaid bills, as well as missed rent to multiple landlords. The lockdowns only exasperated these issues, and the company soon found itself facing numerous lawsuits from landlords.
Last November, Knotel revealed it would attempt to cut down on its global portfolio by 60% over the next six months, while also shedding 80% of its 3.4 million square feet of leases across the U.S. and Canada.