2023-08-14 09:03:02
The shared office giant WeWork, in great difficulty for years and which offers two sites in Brussels, warned the American stock market policeman on Tuesday that he feared for his survival. “There is substantial doubt regarding the Company’s ability to continue as a going concern,” WeWork said in an SEC filing.
At issue, according to the company: financial losses, liquidity needs and the decline in the number of tenants. It says it lost billions of dollars in the first six months of this year due to falling demand linked to poor economic conditions.
Once a startup star, WeWork raised billions of dollars from SoftBank Group. But the controversial management of its founder, Adam Neumann, worried investors, who ended up ousting him in 2019. Then the pandemic emptied the offices, and the company is unable to recover amid demand for business premises has fallen with the rise of telework.
The fate of New York-headquartered WeWork hinges on “the successful execution of management’s plan to improve the company’s liquidity and profitability,” the company said in the SEC filing. . It is considering restructuring, negotiating more favorable terms for leases, increasing the number of tenants and perhaps even issuing debt securities or selling assets.
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