WeWork warns there’s ‘substantial doubt’ about its ability to stay in business

WeWork went public in October 2021 after a spectacular collapse during its first attempt to do so two years earlier — which led to the ousting of its CEO and founder, Adam Neumann. The company was valued at $47 billion at one point, before investors started to drop off due to Neumann’s erratic behavior and exorbitant spending.

The company leases buildings and divides them into office spaces to sublet to its members, which include small businesses, startups and freelancers who want to avoid paying for permanent office space.But over time its operating expenses soared and it relied on repeated cash infusions from private investors. The company also said Tuesday it is facing high member turnover rates.

WeWork’s interim CEO, David Tolley, sounded an optimistic note Tuesday in the company’s results for the second-quarter, during which it lost $349 million. “The company’s transformation continues at pace, with a laser focus on member retention and growth, doubling down on our real estate portfolio optimization efforts, and maintaining a disciplined approach to reducing operating costs,” Tolley said.

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WeWork flags 'substantial doubt' about its ability to stay in businessWeWork Inc. disclosed Tuesday that there’s “substantial doubt” about its ability to continue operating, as the company seeks to improve its financial positioning. Shares of the company, which provides co-working spaces, were down 33% in Tuesday’s after-hours trading. WeWork lost $397 million in the second quarter and has $680 million...
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WeWork expresses 'substantial doubt' about its ability to stay in businessWeWork's second quarter earnings release reveals that the company has concerns about its future due to losses, projected cash needs, and increased member turnover. The company's management has outlined a plan to improve its financial health, but acknowledges that its ability to continue operating is dependent on successful execution over the next year.
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NYC’s real estate market has WeWork’s survival in ‘substantial doubt’Experts say the company’s spiraling circumstances are an indicator of a poor business model, not a failing sub-industry within the commercial real estate sector.
La source: Gothamist - 🏆 456. / 53 Lire la suite »