Knotel, cofounder knotel 1b ann azevedotechcrunch the flexible workspace provider that raised over $560 million last year, has shut down. Newmark has acquired the company’s assets for $70 million. However, it is unclear why the company decided to close its doors. Some attribute its closure to the pandemic, while others blame pending litigation and evictions.
Knotel was a flexible workspace operator. One year ago, it was valued at $1.6 billion, but by February, its revenue had dropped by 20 percent. The company was also facing lawsuits, evictions, and other problems. Eventually, the company filed for Chapter 11 bankruptcy, which has left Knotel with a $70 million debt burden. The company also received $20 million in cash from an affiliate of Newmark.
The company slashed 30% of its workforce last month and furloughed another 20%. At the end of March, Knotel was valued at $1.6 billion. At the start of the year, the company had 500 employees. By the cofounder knotel 1b ann azevedotechcrunch third week of March, it had a workforce of just 400, but was facing a high vacancy rate. About 200 employees retained their jobs, but others were placed on unpaid leave or laid off.
The company that cofounded Knotel, the flexible workspace company, has cofounder knotel 1b ann azevedotechcrunch filed for bankruptcy. It was reportedly valued at $1.6 billion a year ago, and had raised $560 million in investment. However, after facing a number of lawsuits and evictions, the company filed for bankruptcy and has since been acquired by Newmark.