Following its Chapter 11 bankruptcy filing, WeWork has released a list of 40 leases at “underperforming locations” that it hopes to abandon across New York City. If granted court approval, the office-sharing company will relinquish the spaces, resulting in millions of dollars of unpaid rent for landlords, reports the Commercial Observer.
Its list of rejected leases include spaces at 44 Wall Street, 500 Fifth Avenue, 505 Park Avenue, and 54 West 40th Street. Members of these locations would be transferred to nearby high-performing locations, or some may be allowed to negotiate their own deals directly with their current landlords.
Another 29 WeWork locations across the United States and Canada are expected to be amended or abandoned, with potentially more being announced in the weeks ahead. Per a statement filed in bankruptcy court by WeWork CEO David Tolley, the company has amended 590 leases globally since going public in 2021. Four years ago, the company was valued at $47 billion. More recently, that amount dropped to just $45 million, with shares of WeWork's stock falling more than 98% since the beginning of the year.
Illinois-based Hilco Real Estate is in active negotiations with more than 400 landlords to renegotiate the company’s many office leases.