Related news claims, shared office operator WeWork may file for bankruptcy as early as next week, and the location of the bankruptcy protection application may be in New Jersey, USA.
Announced in August this yearSecond quarter financial report for fiscal year 2023Although WeWork stated that its losses had improved, the company's losses had accumulated to approximately $150 billion. It even stated in its financial report that whether it could continue to operate in the future would depend on whether it could successfully improve its cash flow and profitability in the next 12 months.
Since its listing in 2021, WeWork's stock price has fallen by as much as 99%. The New York Stock Exchange even issued a delisting warning in April this year because WeWork's stock price had been below $4 for 30 consecutive trading days, indicating that the market was completely pessimistic about its development.
WeWork was co-founded by Adam Neumann and Miguel McKelvey in 2010. By selecting suitable office buildings and renovating them, they attracted many startups and companies to join through the shared office format. The market was optimistic about its future development, and it even established bases in 39 countries and regions around the world, establishing nearly 800 shared offices, including a shared office in Xinyi District, Taipei, Taiwan. It has also received a large amount of financing, including Softbank's acquisition of a majority stake in it for US$2019 billion in 160, which has enabled WeWork to develop rapidly.
However, with the failure of its first IPO application, WeWork clearly began to decline. Although it merged with BowX Acquisition Corp through a SPAC in 2021, it still failed to improve WeWork's subsequent development. In addition, the uncertainty of the epidemic at the time also caused many companies and enterprises to turn to remote work. Therefore, the readjustment of office leasing investment ratios has made WeWork face greater challenges. Even though more and more companies are now calling on employees to return to work in the office, it still has no substantial help to WeWork's business development.
