Ellen HuetWeWork shares plummeted more than 25 per cent in extended trading after saying there’s “substantial doubt” about its ability to continue operating. The company cited sustained losses and cancelled memberships to its office spaces.
The co-working business will focus over the next 12 months on reducing rental costs, negotiating more favourable leases, increasing revenue and raising capital, WeWork said in a statement Tuesday. WeWork is one of the biggest individual landlords in Dublin. It operates at four locations in the city, although that is down from its peak in 2019. Among other locations, it is the anchor tenant at the 120,000 sq ft former Central Bank of Ireland building on Dame Street, now known as Central Plaza, as well as the 100,000 sq ft Dublin Landings 2 building in the docklands. In addition it has locations at Harcourt Road and the Charlemont Exchange near the Grand Canal.
The warning comes mere months after WeWork struck a deal with some of its biggest creditors and SoftBank to cut its debt load by around $1.5 billion and extend other maturities. Its bonds trade at deeply distressed levels. The company’s 7.875 per cent unsecured notes due 2025 last changed hands for 33.5 cents on the dollar, according to data from Trace.