WeWork, the embattled New York-based coworking firm, said on Monday it filed a motion to keep its leases at two Los Angeles locations.
The company included both as a part of the five lease assumptions it disclosed on April 15 as part of its Chapter 11 bankruptcy reorganization. The first L.A. location is at 5161 Lankershim Boulevard in North Hollywood. The other WeWork coworking space is located at 10250 Constellation Boulevard in Century City.
According to a WeWork spokesperson, the company has seen “really strong demand” for coworking spaces with the rise of flexible work post-pandemic, describing Los Angeles as a “key market for WeWork.” The firm reports market demand for both “on demand” daily bookings and monthly memberships, called WeWork All Access, which “factored into” WeWork’s decision to stay in the NoHo building.
“We continue to work with our landlords to achieve more sustainable lease terms so that we can really stay in as many buildings in the city as possible,” the spokesperson said.
In addition to coworking space itself, the 5161 Lankershim Boulevard WeWork location offers nearby amenities such as restaurants in the NoHo Arts District and galleries in Valley Village.
“The buildings we’ve assumed in L.A. are ones where we see a sustainable path forward for our operations in the long term,” the spokesperson noted. “We’re just really excited by the progress that we’ve made in L.A. so far, and we look forward to continuing this momentum.”
Across the country, WeWork has been on a hunt for fresh financing while negotiating leases with landlords as a part of its comeback plan.
Earlier this month, the company announced that it “determined a final path forward at 90 percent of the locations in its global real estate portfolio through amended leases, new management agreements, or via the lease rejection process” in a statement on April 2. The company plans to exit Chapter 11 by the end of May.
“We remain committed to emerging from our global real estate and financial restructuring later this quarter, and expect to do so with little to no debt,”said CEO David Tolley.
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