Despite Knotel filing for bankruptcy, it is still being hit with lawsuits. The most recent from Y&H Realty Corporation aims to get back $644,443 in missed rent.
In 2016, Knotel took up the second, third, fifth and sixth floors of 116 West Houston Street in Manhattan.
After the pandemic hit, Knotel stopped paying rent at the location, a recurring theme throughout many of the firm’s office spaces in the past year.
The day before it filed for bankruptcy, Knotel informed Y&H it was terminating its lease. Because of the bankruptcy, Y&H is filing its lawsuit directly against the company’s cofounder and CEO Amol Sarva to recoup its losses.
This is one of many lawsuits that Knotel has faced over missed rent. Now, it plans to close many of its U.S. locations as part of its restructuring and is close to being acquired by brokerage firm Newmark.