WeWork To Close Some ''Unprofitable'' Offices Globally As Financial Struggles Persist
NDTV
The company's shares plunged 37% after the company revealed plans to file for bankruptcy as early as next week.
Troubled co-working company WeWork is planning to close some of its buildings globally as part of its efforts to ''improve liquidity and strengthen its balance sheet'', BBC reported. WeWork members at the building on London's Southbank told the BBC that they had been emailed by the company telling them it was closing ''unprofitable'' sites. They were asked to vacate the building by November 30 and WeWork had said it would find them "alternative workplace solutions".
Meanwhile, the company's shares plunged 37% after the company revealed plans to file for bankruptcy as early as next week, as per CNN. Earlier on Tuesday, WeWork said it had agreed with creditors to extend a 30-day grace period to make interest payments on some of its debt that was due to expire this week. The new “forbearance agreement” will terminate on November 6, according to a timeline provided by the company.
A few months ago, US-based WeWork Global made a statement that "substantial doubt" exists about the company's ability to continue as a going concern. Its major backer, Japanese conglomerate SoftBank, invested tens of billions to prop up the startup, but the company has continued to lose money.
