UPDATE: WeWork officially filed for bankruptcy on Monday, November 6. In a statement, the company revealed that creditors representing 92% of the company’s secured debt agreed to a restructuring plan, which will include the termination of some of their leases.
“Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet,” the company’s statement reads.
Today, during its first appearance in bankruptcy court, WeWork called on its tenants to make “meaningful concessions.”
“Our financial creditors have made meaningful concessions, and we expect our landlords to do the same,” said WeWork attorney Steven Serajeddini. “We want our landlords to know that there’s definitely a first mover advantage here, and they should come to the table quickly.”
The following was originally published November 3, 2023:
“WeWork is planning to file for bankruptcy as early as next week,” The Wall Street Journal published this week, citing individuals close to the matter. Once a lucrative startup, WeWork’s difficult several years has led to speculation on the company’s ability to continue. Now, it seems, the writing is on the wall.
Once valued at $47 billion, the co-working space company saw a net loss of $2.3 billion in 2022, followed by a loss of $696 billion in the first six months of this year, reports Ars Technica.
As we previously reported, WeWork’s troubles began during talks to become a public company in 2019. Earlier this year, WeWork warned investors during its second quarter earnings report that “substantial doubt exists about the Company’s ability to continue as a going concern.”
The following was originally published August 11, 2023:
The rollercoaster ride that has been WeWork’s journey has just gotten a new twist, as its recent earnings report resulted in the co-working space company’s stock to plummet and its very future as a company to be shrouded in uncertainty.
See also: WeWork Deploys Mersive Technologies Solstice Collaboration Platform at 500+ Locations
Once a promising startup, WeWork’s path became shaky it began talks to go public in 2019, and its downward spiral since has seen the company’s market cap shrink to a current $105.5 million. Yahoo Finance reported that WeWork’s second quarter earnings report warned investors that, “substantial doubt exists about the Company’s ability to continue as a going concern.”
Following the earnings report, WeWork’s stock saw a drop of nearly 40%.
During its previous crisis, the company was bailed out by its largest outside investor, SoftBank, in an effort that reportedly cost over $10 billion. This resulted in its co-founder and CEO Adam Neumann stepping down and the company going public in 2021, commencing the once-promising venture’s current era.
See also: WeWork Deploys Thousands of Konftel Wireless Conferencing Solutions for Members Worldwide
In the company’s recent earnings call, management attempted to placate investors by detailing plans to increase the company’s profitability, as well as answering questions that they selected. Judging by the sudden plummet in stock, however, the future of the company is anything but certain.
