WeWork's Bankruptcy Woes: Company plans to file papers by next week, says WSJ
WeWork raises doublt about its survival The company also signed a seven-days long forbearance agreement with its creditors on October 30 (Monday), it added. A company spokesperson told Bloomberg this agreement would provide “time to continue in the positive conversations with our key financial stakeholders and engage with them to implement our ongoing strategic efforts to enhance our capital structure." Forbearance is a lender's temporary approval to delay loan payments, given in place of compelling the borrower into foreclosure or default. The spokesperson added that WeWork has a “a clear, long-term vision for the future", but did not respond to other queries, as per Bloomberg.
WeWork kicked-off in 2010 during the initial venture capital (VC) boom with co-founder Adam Neumann at the helm. It raised billions and often doubled revenue year-on-year, quickly growing to a global company. It was at one point the US' most valuable start-ups.
Earlier in August this year, WeWork had warned it fears going bankrupt when shares crashed to near zero after the company said there’s substantial doubt about its ability to stay in business as it burns through cash. WeWork shares have lost nearly all of their value since its debut in October 2021. The SoftBank-backed company has been suffering with hefty losses, corporate governance lapses and the management style of then founder-CEO Adam Neumann, Reuters reported.
A number of executives have left the company, including CEO Sandeep Mathrani in May and three board members in August 2023. Also Read: WeWork to cut 300 jobs globally as inflation weighs on workspace spending WeWork’s business model includes taking long-term leases and renting out spaces for a short term. The company’s net loss
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