WeWork, shortly after warning about its future, seeks to renegotiate nearly all of its leases

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WeWork says it will renegotiate nearly all of its leases, an announcement coming just weeks after the workspace-sharing provder sounded the alarm on its future ability to stay in business

NEW YORK — NEW YORK (AP) — WeWork said Wednesday it will attempt to renegotiate nearly all of its leases and may exit some properties, an announcement coming just weeks after the workspace-sharing company sounded the alarm over its ability to remain in business.

The New York company must reduce its operating costs — notably its current lease liabilities, which “remain too high and are dramatically out of step with current market conditions," WeWork Interim CEO David Tolley said in a statement published on the company's website.

WeWork's lease liabilities accounted for more than two-thirds of its operating expenses for the second quarter of this year, Tolley said. As of June 30, WeWork had 777 locations in 39 countries.

“We will seek to negotiate terms with our landlords that allow WeWork to maintain our unmatched quality of service and global network, in a financially sustainable manner,” Tolley wrote — adding that the company expects to exit “unfit and underperforming locations” as part of these negotiations.

Last month, speculation around WeWork's future and a potential bankruptcy filing heightened after the company warned there was “substantial doubt” about its ability to continue as a going concern, meaning it might not have the resources needed to operate and stay in business. WeWork pointed to rising member churn and other financial losses, noting that its ability to stay in operation would be contingent upon improving its liquidity and profitability over the next 12 months.

“Among my clients that have WeWork as a tenant, there is