WeWork in trouble, future uncertain

Flexible office provider WeWork is reportedly facing bankruptcy, as demand for co-working spaces has weakened as a result of the Covid-19 pandemic.

The New York-based company has been struggling with a large debt and losses for several years, losing up over 98% of its market value.

On 1 November, WeWork did not pay the interest on its bonds and was given a 30-day grace period.

On 30 October, the company said that it was talking to some of its investors, such as SoftBank and Goldman Sachs, about how to restructure its debt.

Last week, London-based property developer Helical evicted WeWork from six floors of The Bower building on Old Street in London due to non-payment of rent for the September quarter.

WeWork was allowed back into the building after signing a short-term lease and paying all of the outstanding rent and fees.

The company lost $696 mln (€653 mln) in the first six months of the financial year to 30 June.

At the time, WeWork's interim CEO, David Tolley, said that the negative performance was due to an ‘excess supply in commercial real estate, increasing competition in flexible space and macroeconomic volatility’.

According to press reports, WeWork could start closing some of its buildings across the world.

In Europe, the company has co-working space and offices in Belgium, the Czech Republic, France, Germany, Ireland, Italy, The Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden and the UK.


Latest news

Best read stories