What's going on at WeWork?"As a result of the company's losses and projected cash needs, combined with increased member churn and current liquidity levels,The shared-workspace giant said it can only stay in business if it improves its liquidity and profitability over the next 12 months. Its bosses plans to lower its rent and tenancy costs by restructuring and negotiating better lease terms, and boost its revenue by attracting and retaining members.
"Excess supply in commercial real estate, increasing competition in flexible space and macroeconomic volatility drove higher member churn and softer demand than we anticipated, resulting in a slight decline in memberships," he said. Those headwinds dragged on WeWork's financials last quarter. It reported a net loss of $1.1 billion on revenues of $1.6 billion last quarter, and its operating cash outflow exceeded $500 million in the first half of this year. It also had less than $700 million of liquidity at the end of June, comprising $205 million of cash, and $475 million of borrowing capacity. That compares to nearly $900 million of current lease obligations, and over $13 billion in long-term lease obligations.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:
Business Business Latest News, Business Business Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
WeWork expresses 'substantial doubt' about its futureWeWork has revealed concerns about its ability to continue operating as it tries to improve its financial situation. The company's shares dropped by 33% in after-hours trading. WeWork reported a loss of $397 million in the second quarter and currently has $680 million in liquidity.
Source: MarketWatch - 🏆 3. / 97 Read more »
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.
Source: CNN - 🏆 4. / 95 Read more »
WeWork warns of remaining 'going concern' and says bankruptcy is possibleWeWork has expressed doubt about its ability to continue operating as a 'going concern' due to mounting losses and dwindling cash. The company's stock price has been consistently below $1 and membership has been weaker than expected, partly due to a struggling economy.
Source: CNBC - 🏆 12. / 72 Read more »
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...
Source: MarketWatch - 🏆 3. / 97 Read more »
WeWork Raises Doubt About Its SurvivalWeWork expresses concerns about its ability to continue operating due to losses and a decreasing cash reserve, as the way people work undergoes significant changes. The company has issued a going-concern warning as its co-working clients are canceling memberships at a higher rate than anticipated. WeWork has outlined plans to enhance liquidity and profitability.
Source: WSJ - 🏆 98. / 63 Read more »