WeWork reported that there is “substantial doubt” the company will be able to stay in business, citing a “slight decline in memberships” and “increasing competition.”
They indicate that avoiding bankruptcy is “contingent upon successful execution of management’s plan to improve liquidity and profitability over the next 12 months.”
In March 2016, WeWork raised $430 million in financing from Legend Holdings and Hony Capital, valuing the company at $16 billion. Japan’s investment conglomerate SoftBank put nearly $20 billion into WeWork to date and valued Wework at a peak valuation of $47 billion valuation prior to its failed attempt at an initial public offering in 2019.
WeWork reports that is near bankrupcy.
In March, 2023, the CEO and CFO resigned after massive losses were reported.
Consolidated revenue for the second quarter 2023 was $844 million, an increase of 4% year-over-year and up 7% for the first half 2023 year-over-year.
Net loss was $(397) million, a $238 million improvement year-over-year, and an improvement of $443 million for the first half 2023 year-over-year.
On May 5, 2023, the Company closed on its previously announced debt exchange and restructuring transactions. As of June 30, 2023, the Company had $680 million of liquidity, consisting of $205 million of cash and $475 million of capacity under its delayed draw, first lien notes, of which $175 million were drawn in July 2023.
In addition, as disclosed in WeWork’s Quarterly Report for the three and six months ended June 30, 2023 (the “Second Quarter 10-Q”).
As of June 30, 2023, WeWork’s systemwide real estate portfolio consisted of 777 locations across 39 countries, supporting approximately 906,000 workstations and 653,000 physical memberships, equating to physical occupancy of 72%, and a decrease in physical memberships of 1% year-over-year.
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