WeWork's future: What to know after the company sounds the alarm on its ability to stay in business

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WeWork said last week there was “substantial doubt” about its ability to stay in business, prompting speculation around the future of the troubled workspace-sharing company.

, Adam Neumann. WeWork was valued at $47 billion at one point, before investors started to drop off due to Neumann’s erratic behavior and exorbitant spending.

Since Neumann’s 2019 ouster, the company has seen several leadership changes. Most recently, Sandeep Mathrani, who joined WeWork in 2020, stepped down in May — bringing David Tolley into the position of interim CEO. On Friday morning, WeWork's market capitalization stood at about $260 million. Shares were down more than 91% year end to date.No, at least not yet. But risk of bankruptcy is on the table, experts say.

WeWork did not comment directly on the prospect of bankruptcy. In a Tuesday statement to The Associated Press, a spokesperson said, “our members remain our top priority and we are resolutely focused on delivering for them for the long term.” According to a recent Securities and Exchange Commision filing, WeWork was operating 43.9 million rentable square feet around the world as of December 2022 — including 18.3 million rentable square feet in the U.S. and Canada.

The shuttering of some WeWork locations isn't new. Over recent years, as WeWork worked to cut costs, the company has stopped paying rent or exited lease agreements early for a handful of locations across the U.S., according to credit rating and research firm Morningstar Credit. In some cases, landlords' building loans moved to special servicing after losing WeWork as a tenant.

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WeWork's future: What to know after the company sounds the alarm on its ability to stay in businessWeWork said last week there was “substantial doubt” about its ability to stay in business, prompting speculation around the future of the troubled workspace-sharing company.
Source: AP - 🏆 728. / 51 Read more »