Four years ago, WeWork was preparing for a blockbuster IPO. Now the company is warning of possible bankruptcy.
“Our losses and negative cash flows from operating activities raise substantial doubt about our ability to continue as a going concern,” WeWork said in a filing with the SEC on Tuesday.
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, 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.
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.