Connect with us

PropTech

Knotel faces existential crisis as lawsuits mount

Knotel’s Founder and CEO Amol Sarva (Credit: Knotel)

Knotel is facing an escalating barrage of evictions, claims from unpaid vendors and lawsuits seeking millions of dollars in back rent. In total, Knotel has been hit with 21 lawsuits in New York State Supreme Court seeking nearly $10 million in damages, The Real Deal reported.

  • There will be lawyers: Most of those cases seek to compel the parent company to enforce the guarantees it provided for the LLCs that lease Knotel locations. 
  • Worth Noting: The largest lawsuit was filed by an entity controlled by Brooks Brothers owner Claudio Del Vecchio, which is seeking $3 million from Knotel for its space above the company’s flagship store at 11 East 44th Street.
  • How WeWork 2.0 looked before the pandemic in November, 2019… Knotel had a 33 percent vacancy rate in its nearly 2.4 million-square-foot NYC portfolio. The company’s leasing activity dropped by nearly 80 percent between the third and fourth quarter of 2019. Imagine what the vacancy rate looks like today.
  • From a former employee: “There was a lot of shade thrown on other businesses… But they were running the exact same business model.” [TRD+Crain’s]

Continue Reading
To Top