In a move signaling the tumultuous saga of WeWork’s financial woes, the company’s very own Manhattan headquarters is now on the chopping block as part of its bankruptcy restructuring.
WeWork, the once high-flying co-working giant, disclosed in a bankruptcy filing on Monday its intention to shed its 300,000-square-foot lease at Kato International’s Tower 49 — a flagship location — by May 31, according to Bisnow.
A WeWork spokesperson said, “Our intention is to stay in as many buildings as possible under economic terms that position all parties for a sustainable future. Unfortunately, after extensive conversations, we have been unable to reach a deal regarding our operations at Tower 49 that would enable us to successfully operate the building for the long term.”
With 2,800 members currently housed at Tower 49, at 12 E. 49th St., WeWork faces the daunting task of relocating them as part of its portfolio consolidation strategy.
The company initially inked the lease at Tower 49 in 2016, securing approximately 160,000 square feet across 10 floors.
WeWork’s restructuring efforts aim to slash approximately $8 billion in rent expenses, with plans to shutter around 150 locations, while still retaining over 335 locations.
Notably, agreements with 92% of secured-note holders have been reached, paving the way to alleviate more than $3 billion in debt obligations. The company eyes emerging from bankruptcy as early as next month.
It is unclear where they are headed next, but in a statement to The Post, WeWork added: “We will be reaching out to members this week to find alternative solutions and we deeply apologize for any inconvenience this may cause. We are fully committed to, and will remain headquartered in, New York City.”
A source told The Post the company’s decision to move its headquarters was a “difficult one,” but not uncommon within the company.
“WeWork has moved its headquarters around New York City through the years a few times. It’s something [they] do pretty successfully, and it’s something [they] do probably more often than other companies.”
However, amid this financial maelstrom, a familiar figure seeks to seize control. WeWork’s ousted founder, Adam Neumann, has launched a bid to acquire the company for $650 million. Neumann contends that WeWork stonewalled negotiations and warns of potential repeat bankruptcy woes.
Allegations fly back and forth as Neumann and WeWork engage in a battle of words. Neumann insists that WeWork’s optimistic occupancy projections are a mirage, predicting a dire future of undercapitalization and negative cash flow.
Neumann’s own journey with WeWork has been a rollercoaster ride.
After being ousted in late 2019 following a disastrous IPO attempt, he embarked on a new venture with Flow, focusing on residential apartments.
Real Estate – Latest NYC, US & Celebrity News
