“From $40 billion to ‘going concern’ — WeWork warns of possible bankruptcy”
August 9, 2023
“The spectacular collapse of a company once valued by SoftBank at $40 billion has been years in the making, but is still surprising given the number of large commercial buildings around the world that don the company’s name. The combination of the Covid pandemic [LOCKDOWNS], which led many businesses to exit their leases in favor of remote work, and the subsequent economic slump, has left WeWork heavy on debt and struggling to generate cash…
WeWork’s stock has been trading below $1 since mid-March. It tumbled 26% to 15 cents in extended trading on Tuesday and now has a market cap below $500 million.
The company had a net loss in the first half of the year of $700 million after losing $2.3 billion in 2022. As of June 30, it had $205 million in cash and equivalents and total liquidity of $680 million. It has $2.91 billion in long-term debt…”