Knotel Files for Bankruptcy as Pandemic Strains Office Rentals

Nicole Bullock

(Bloomberg) -- Knotel has filed for Chapter 11 bankruptcy in Delaware court after the WeWork rival was pressured by the coronavirus.

The company, which manages and rents short-term office space, has had to grapple over the past year with companies and governments mandating that workers stay at home.

It listed both estimated liabilities and assets of $1 billion to $10 billion. The company has obtained debtor-in-possession financing from an affiliate of Newmark of about $20 million in cash.

In March of last year, New York-based Knotel said it was cutting or furloughing half of its staff, or about 200 workers, in response to the coronavirus.

Covid-19 cast doubt on the business model of Knotel and other flexible office space and co-working companies that rely on people working near other other.

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