EMBATTLED co-working space Wework is being dragged to court because it is refusing to forfeit the lease at one of its most profitable locations on London's Southbank, according to reports.

Almacantar, the property developer who oversees the building at 10 York Road, has been trying to kick the troubled American firm out since it filed for Chapter 11 Bankruptcy in the US.

One insider told React News, the publication which first reported the findings, owners want "Wework out" because it "destroys" values due to the weakening of its covenant.

Wework is understood to be up to date on rent payments for the 300,000 sq ft space, and forks out £19.7m to occupy the tower each year.

The ongoing case hinges on whether or not the guarantor for Wework's lease can be proven to be the company that entered into Chapter 11 bankruptcy.

Wework is arguing its warrantor has not filed for bankruptcy.

A spokesperson for Wework said: "We will vigorously defend ourselves in court, and fully expect to prevail in this process. It remains business as usual for our members."

Almacantar declined to comment.

(c) 2024 City A.M., source Newspaper