WeWork says it has 'substantial doubt' about its ability to stay in business | CNN Business

The future of WeWork is uncertain, according to the company. WeWork management outlined a plan to improve the company’s financial health, saying that its ability to stay in business is “contingent upon successful execution” over the next 12 months. WeWork, which operates coworking spaces, said it will try to lower rent costs by negotiating more favorable lease terms and increasing revenue by reducing canceled memberships as part of its turnaround plan.

Overall, WeWork’s stock is down 85% since the start of this year. WeWork’s precarious future comes amid a difficult time for the commercial real estate sector. Office and retail property valuations have plummeted since the pandemic made way for a rise in hybrid working. Rising interest rates have also damaged the credit-dependent industry. WeWork was valued at $47 billion at its peak, but it struggled to fully recover after a failed attempt to go public in 2019.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

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 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 »

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.
Source: Gothamist - 🏆 456. / 53 Read more »