WeWork plans to file for bankruptcy as early as next week, source says
WeWork plans to file for bankruptcy as early as next week, source says
The SoftBank Group-backed company struggles with a massive debt pile and hefty losses.
There is a discussion on Hacker News, but feel free to comment here as well.
Given that they're basically a commercial real estate holding company posing as a hip startup, and commercial real estate values are in the shitter compared to a couple years ago, yes, they should be going bankrupt. It's good news for the rest of us though, as commercial real estate prices come down, it's easier for small businesses to sustain themselves
I never could make sense of them as my company rented office space from Regus in the UK and I'm like, "how's WeWork THIS big of a deal?"
Can't believe Adam Neumann took the bag and ran and is starting up another venture.
Honestly thought that place when bankrupt years ago. Especially with everybody working from home I imagine the demand for rentable office space plummeted.
This is the best summary I could come up with:
Oct 31 (Reuters) - WeWork (WE.N) plans to file for bankruptcy as early as next week, a source familiar with the matter said on Tuesday, as the SoftBank Group-backed company struggles with a massive debt pile and hefty losses.
New York-based WeWork is considering filing a Chapter 11 petition in New Jersey, the WSJ reported, citing people familiar with the matter.
Earlier on Tuesday, WeWork said it had entered into an agreement with creditors for temporary postponement of payments for some of its debt, with the grace period nearing an end.
The company has been in turmoil ever since its plans to go public in 2019 imploded following investors' skepticism over its business model of taking long-term leases and renting them for the short term and worries over its hefty losses.
Its major backer, Japanese conglomerate SoftBank, sunk tens of billions to prop up the startup, but the company has continued to lose money.
WeWork raised "substantial doubt" about its ability to continue operations in August, with numerous top executives, including CEO Sandeep Mathrani, departing this year.
The original article contains 296 words, the summary contains 177 words. Saved 40%. I'm a bot and I'm open source!
We outta work
We worked