WeWork's tumultuous thirteen-year saga may be coming to an end soon, as now Reuters and the Wall Street Journal have reported on the company’s apparently imminent plans to file for Chapter 11 bankruptcy in New Jersey.
The news was first reported by the WSJ early Tuesday, precipitating a dramatic nearly 50% drop in WeWork’s stock evaluation. A spokesperson for the company told reporters from CNN the same day that they would not comment on the legal maneuver, calling the news “speculation.”
Shares of WeWork have fallen by 96% since the beginning of the year. The business model founder Adam Neumann developed into a record-breaking $47 billion initial valuation was ultimately felled by the post-pandemic rise in remote work and other factors, including multiple conflicts of interest that led to his resignation in September 2019.
Neumann has since pivoted to a new housing startup venture called Flow last summer following a $350 million outside investment and is yet to provide his own statements as to his former company’s future or potential dissolution.
WeWork has reported net losses totaling $694 million and $397 million in Q1 and Q2 of this year alone, respectively. They offered an improvement over the $1.1 billion in losses posted for the last quarter of 2022. A retrospective post-mortem of their brief but noteworthy influence on architecture could potentially offer more insights into the downfall from a business development perspective.
At present, WeWork operates a total of 779 properties worldwide.
8 Comments
Get ready for the flood of high end office furnishings!!
Most of their stuff was pretty cheap, just supposed to look expensive.
Aeron chairs!!
Man, what era of Wework was that? The one I visited had Steelcase Series 1 ($400)
You might be right, but they still have a lot of chill furnishings, plus lighting.
Adam Neumann was the greatest snakeoil salesman of all time.
Can't wait for when this one comes out: https://www.clog-online.com/ne...
I don’t get the hate for WeWork. They provide cheap, nicely designed spaces for small business. If efficient WeWork can’t survive then cities are in big trouble.
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