Feeling pressure from landlords over outstanding January rent payments, WeWork proposed rejecting nine additional leases this week as it continues to navigate through its bankruptcy proceedings.
The official court motion, as reported by BisNow, was filed in bankruptcy court on Wednesday. The court filing is the company’s latest effort to cut down on its portfolio as it grapples with the complexities of financial restructuring and ongoing lease negotiations.
Prior to seeking additional lease rejections this week, it was reported the struggling coworking giant incurred at least $33 million in unpaid rent, due January 1 — with some landlords demanding immediate payment. The withholding of rent payments was cited in a court filing as a negotiation tactic used by WeWork to put pressure on landlords during lease negotiations.
Seven landlords filed motions on Tuesday requesting that the court mandate WeWork to settle its outstanding rent obligations. Additionally, two of those seven landlords are reported to own a location on the new list.
WeWork already had plans to reject 67 leases at underperforming locations — with an additional 13 added later, all of which received court approval. Included in the latest closure list are three New York City properties, revealing WeWork’s desire to further decrease its footprint in the metropolitan area. By rejecting leases and amending others, it’s estimated that WeWork has slashed at least $3.7 billion in lease expenses so far.
