Newsweek Couldn’t Pay Its Rent On Time And Faced Eviction
Image Credit: Daily Beast
Original Article | Author: Maxwell Tani
The crumbling media empire owed its landlord more than $300,000, according to court documents, and faced legal action over it. The company, however, claims its all settled.
Looming investigations into Newsweek Media Group’s finances have demoralized the legacy magazine’s staff and left a cloud of doubt over the company’s long-term future. But now the company faces another more immediate issue: Whether it can stay in its New York headquarters.
Guardian Life Insurance, the sub-landlord for the company’s downtown Manhattan office, informed International Business Times Inc. in late November that it owed several hundred thousand dollars representing “unpaid, delinquent rent and additional rent.”
According an affidavit filed in New York County court in mid February, Guardian claims IBT currently owes the landlord $303,466 in rent.
The Daily Beast reached out to Newsweek prior to the publication of this story. After its publication, Newsweek provided comment: “Newsweek Media Group’s landlord discontinued all proceedings and withdrew all notices against the company. Newsweek Media Group is up to date on all rental payments.” When asked to provide documentation or clarification proving that, the spokesperson declined.
The saga began in November, when Guardian filed several notices demanding IBT pay its rent and utilities or else the tenancy would be “terminated in accordance with your lease.” By December 4, a notice of petition filed by Guardian said the online newspaper’s debt to its landlord ballooned to $452,000 plus interest.
The documents showed that the company did not pay rent promptly for both November and December 2017 for its fifth- and partial sixth-floor spaces at 7 Hanover Square, resulting in $138,530 in unpaid rent alone.
And that rent was the tip of the iceberg.
The company had stopped paying other bills months ago, racking up what Guardian claimed in early December as an additional $309,229 invoice for various utilities and fees.
IBT stopped paying its electric bill in July 2016, stopped paying for condensed water in September 2016, and lagged in paying rent on-time every month since July 2016—resulting in thousands of dollars worth of late fees. Newsweek also didn’t compensate Guardian for "real-estate taxes" for both 2016 and 2017, resulting in a $75,000 charge.
But instead of paying up, IBT balked.
The company filed several motions disputing the invoices in New York County Court. It also disputed that IBT violated its lease, and declined to pay rent to Guardian, claiming that it did attempt to pay rent.
