from Hacker News

Founders, be careful about personally guaranteeing leases

by mgav on 10/13/22, 9:45 AM with 10 comments

The co-founder in this story supposedly personally guaranteed her startup's lease. The startup failed and now she's being sued personally for $1.7 million.

https://therealdeal.com/2022/10/12/soho-landlord-sues-audrey-gelman-the-wing-for-1-7m-in-rent/

  • by e1g on 10/13/22, 1:25 PM

    Sometimes you don’t have a choice to do the right/safe thing.

    I signed multiple commercial leases in lower Manhattan, and had serious negotiations with ~10 landlords through our agent - the clause for personal/3rd party guarantee was non-negotiable for every single one.

    This company had WeWork as a major investor, and I’m sure they had good advisors all around, but Manhattan real estate is a special beast.

  • by 2rsf on 10/13/22, 12:23 PM

    That's relevant to everything in a business and why limited liabilities were invented. If you are guaranteeing something personally then you are the one the needs to pay them at the end