WeWork warns it might go out of business

Aug 9, 2023 | Entertainment, News


WeWork has gone from being a star of the sharing economy with billion-dollar dreams to facing the possibility of shutting its doors
WeWork has gone from being a star of the sharing economy with billion-dollar dreams to facing the possibility of shutting its doors.
Photo: Patrick T. Fallon / AFP
Source: AFP

Embattled office-sharing firm WeWork on Tuesday warned US regulators that it is worried about its survival.

Citing financial losses, cash needs, and a drop in memberships, WeWork said in a filing with the Securities and Exchange Commission (SEC) that “substantial doubt exists about the company’s ability to continue as a going concern.”

The fate of the New York-based company depends on the “successful execution of management’s plan to improve the company’s liquidity and profitability,” it said in the filing.

WeWork’s plan for the year ahead includes restructuring, negotiating more favorable terms on leases, beefing up membership and possibly even issuing debt or selling off assets, the SEC filing said.

WeWork has lost billions of dollars during the first six months of this year, with macroeconomic conditions weakening demand for its shared office spaces, the company told regulators.

WeWork’s share price has been below a dollar for months and fell to 16 cents in after-market trading on Tuesday.

PAY ATTENTION: Сheck out news that is picked exactly for YOU ➡️ find the “Recommended for you” block on the home page and enjoy!

WeWork has been trying to turn the page on Adam Neumann, its co-founder and former leader whose antics tired investors.

The company has been in trouble since Neumann’s forced departure in late 2019 following WeWork’s failed IPO, in which the company’s valuation fell from $47 billion to less than $10 billion.

WeWork had been a celebrated star in the sharing economy that put a mammoth footprint in the commercial real estate of major cities around the globe.

Its collapse led to Neumann’s departure and cost the main shareholder, Japanese billionaire Masayoshi Son, billions of dollars.

Source: AFP





Source link

Recent Post

Laila Charani celebrates husband Nwoko’s defection to APC

Laila Charani, one of Senator Prince Ned Nwoko’s wives, has congratulated him on his defection to the All Progressives Congress (APC). She shared photos of the ceremony, praising his passion The post Laila Charani celebrates husband Nwoko’s...

Recent Event Post

Post you may also like

Laila Charani celebrates husband Nwoko’s defection to APC

Laila Charani, one of Senator Prince Ned Nwoko’s wives, has congratulated him on his defection to the All Progressives Congress (APC). She shared photos of the ceremony, praising his passion The post Laila Charani celebrates husband Nwoko’s...

My wife most googled person on earth – Kanye West

“For clarity/February 4th 2025/My wife is the most Googled person on the planet called Earth.” American rapper, Kanye West has boasted about the viral sensation his wife, Bianca Censori, became after wearing an “invisible dress” on the...