Newsweek facing eviction over back rent

Newsweek magazine (aka Newsweak) has had its share of financial agita [it's an Italian word] over investigations and staff feeling demoralized.

That's the good news. 

Now the magazine faces a looming eviction from their New York headquarters for being delinquent on "unpaid, delinquent rent and additional rent," according to Guardian Life Insurance, the sub-landlord for their downtown Manhattan office.

According to court papers filed in New York County in mid-February, Guardian claims IBT currently owes the landlord $303,466 in rent.

Maybe they can ask the Trump family for a loan, but I suspect it ain't gonna happen.

Back in November, Guardian filed several notices demanding IBT pay its rent and utilities or their tenancy would be "terminated in accordance with your lease."

By December 4th, a notice of petition by Guardian claimed Newsweek's debt climbed to $452,000 plus interest. It showed the company didn't pay rent promptly for November and December 2017 for its spaces at 7 Hanover Square, which resulted in $138,530 in unpaid rent alone.

It turns out that Newsweek acted a lot like Karl Marx by not paying rent and other bills months ago. Guardian claimed in early December an additional $309,229 invoice for various utilities and fees.

Current and former staffers aren't surprised by Newsweek refusing to pay rent. 

"Them not paying is in the DNA," one former employee told The Daily Beast (who actually does pay the rent). "From not paying freelancers to not paying rent, it's just how they do business."

The company stopped paying the electric bill in July 2016 and for condensed water in September 2016. Since July of that year, the company lagged in paying rent on-time ever month, which resulted in thousands of dollars in late fees, as per their lease.

Newsweek also did not pay Guardian for "real-estate taxes" for 2016 and 2017 and ended up with a $75,000 charge.

Instead of doing the right thing, the company filed legal motions disputing the invoices in New York County Court and disputed that IBT violated its lease and declined to pay Guardian, claiming that it tried to pay the rent and insisted Guardian refused to accept the rent payments.

The magazine got a temporary "Yellowstone" restraining order to keep them from being evicted.

The two companies tried to reconcile, but Guardian became frustrated with IBT's erratic payments. They also disputed the claim that Newsweek attempted to pay its rent and that it was rejected by the landlord.

The temporary restraining order ends Wednesday allowing Guardian to take legal action against Newsweek and could lead to an eviction.

All in all, it appears that Newsweek is about to bite the dust, and do the biting in the streets of New York.



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