Knotel Files for Bankruptcy as Pandemic Strains Office Rentals
- Co-working space plans to liquidate as part of Chapter 11
- DIP provider Digiatech plans $70 million credit bid for assets
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Knotel Inc. filed for bankruptcy in Delaware after the WeWork rival succumbed to work-from-home pressures driven by the coronavirus pandemic.
The firm plans to use the Chapter 11 process to sell assets and liquidate, according to a declaration by Chief Financial Officer John Jureller. An affiliate of Newmark Group Inc., a real estate services firm, provided $20 million of new bankruptcy financing and committed to a $70 million stalking horse credit bid for the assets. The bid sets the floor for further bids at auction.