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Knotel

Company

Real Estate
Since 2016
USA


Content

Knotel  is kovorkingovy network which co-founder is Eduard Shenderovich. The Russian investor is known on creation of SUP Media company which purchased LiveJournal.

History

2021: Statement for bankruptcy

At the end of January, 2021 Knotel submitted the application for bankruptcy. The Kovorkingovy company took this step to carry out reorganization and to sell assets.

Under the terms of the agreement, Knotel with the new owner (the Newmark Group company specializing in services of consulting in the field of a commercial real estate) will reorganize transactions and a capital structure, will refuse several office spaces in the USA. Newmark will allocate to a startup about $20 million money, but this tranche should approve court. Knotel calculates that this money will be enough for current transactions during reorganization.

The network of co-workings Knotel with the co-founder from Russia announced bankruptcy
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The pandemic [[[COVID-19|COVID-19]] coronavirus — a comment of TAdviser] created extraordinary difficult operating environment, having had significant effect on turnover of the rent real estate and the number of prolongation of lease in the key markets, in particular, in New York and San FranciscoThe Wall Street Journal cites words of the co-founder of Knotel Amol Sarva. — We should solve this problem now to provide to our business steady growth and the successful future.
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In 2020 revenues of Knotel were strongly reduced because of a pandemic in the conditions of which many companies transferred the employees to remote work, and losses and debts grew. According to the Business Insider edition, accounts payable of Knotel grew from $54.4 million in January, 2020 to $119.8 million in October, and receivables jumped up from $6 million to $75.4 million.

Also Knotel faced numerous legal claims in several states from lessors and creditors — they claim that the firm owes millions of dollars of the unpaid rent and other obligations.

At the end of January, 2021 Knotel together with other subsidiary companies in the USA started insolvency proceeding according to Chapter 11 of the Bankruptcy code.[1]

2020: Staff reduction for 30%

At the end of March, 2020 Knotel announced a personnel decrease half - it will concern 200 people. The kovorkingovy network took such measures in response to spread of a coronavirus of COVID-19 which undermines business of the company.

As the CEO of Knotel Amol Sarva refined, about 30% of jobs are reduced, generally in the USA. Another 20% of workers are sent on a leave without pay where such accessibility (mainly it concerned Europe).

The Kovorkingovy network with the Russian roots dismissed 30% of employees because of a coronavirus

By the end of March, 2020 of Knotel has offices more than in 10 cities of the USA, Europe, South America and Asia

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Work in the normal mode is stopped. Knotel made the decision to prepare strictly for the worst scenario — long crisis in terms of health care and economy  — Sarva said, having added that personnel restructuring assumes "huge changes" in a project team.
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At the same time in February, 2020 Amol Sarva said that the company is close to profitability, and expected to earn at the end of 2020 from contracts about $350 million. Against the background of a coronavirus pandemic the company reviewed the forecast, but still hopes to get rid of losses in 2020.

Knotel ceased to conduct negotiations on purchase of new office space and signing of new lease agreements, Sarva told. According to him, support of the existing clients became the main objective to Knotel only. On the website Knotel also  reported that will significantly reduce salary to top management, including by 50% — to the CEO.

As notes the Bloomberg agency, the kovorkingovy companies, including Knotel and WeWork, strongly suffered from the outbreak of a coronavirus of COVID-19 as it led to the fact that many companies and state institutions sent the employees to work from the house. According to experts, the market of a co-working can never become former.[2]

2019: Attraction of $400 million investments, assessment of the company — $1 billion

On August 21, 2019 Knotel announced end of a round of financing according to the results of which the company attracted $400 million and was estimated more than at $1 billion. According to some information, it is about assessment in $1.3 billion.

From the moment of the basis in 2016 and till August of the 2019th Knotel in total attracted $560 million. Since October, 2018 the company doubled assessment — then it cost $500 million.

The network of co-workings with the Russian roots received $400 million and was estimated at $1 billion

The Kuwaiti company Wafra and  the Japanese Mori Trust, Itochu and  Mercuria Investment invested in a kovorkingovy startup. They are sure that Knotel is capable to compete with  WeWork.

Knotel is going to spend the raised funds for expansion of presence of network of co-workings in 30 largest cities of the world and closer interaction with corporate clients.

By August, 2019 the company has more than 200 kovorkingovy offices which are in New York, San Francisco, London, Paris, Berlin, Toronto, Rio de Janeiro and other cities. Knotel was going to open office space in Moscow in 2019.

According to the VentureBeat edition, in staff of Knotel is architects, interior designers and specialists in the organization of a working space who not just interact with lessors concerning fixing of jobs and separation of premises, and help to fill places with tenants and to manage objects, allowing to reduce the cost of lease and different expenses.

Knotel reduced cash expenditures of construction of small office spaces to $3 thousand from $15 thousand in 2017, and time expenditure — from one day till two o'clock.[3]

Notes