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WeWork said Thursday that it was going to close roughly 40 “underperforming” locations in the United States and tempered its revenue forecast for the year, highlighting the challenges the co-working company still faces after its near collapse and subsequent bailout in 2019. — The New York Times
The company reported a pre-pandemic level matching 71% occupancy rate for Q3 but will fall short of previously projected revenue values for the year owing to “lower than expected” growth in the U.S., Canada, and Japan. Its own S9-designed Dock 72 corporate offices in Brooklyn were also reduced... View full entry
An executive told employees on a video call that the firm didn’t have enough money to pay severance packages or unused paid time off, a person who attended the meeting said. The executive said the effects of Covid-19, as well as rising costs of labor and construction materials, contributed to its latest cash crunch. — The Information
Katerra, a closely watched startup founded 6 years ago, had a vision to reinvent the massive construction industry. After a few years of challenges and bailouts from investors, they've announced this week that they will shut down. The CEO of SoftBank, Masayoshi Son, indicated that Katerra... View full entry
Since our initial coverage of the Silicon Valley-based construction start-up, Katerra has experienced several ups and downs over the past few years. While the company has grown significantly since it was founded in 2015, financial issues continued to rise. Katerra's CEO Pall... View full entry
Katerra has failed to complete roughly a dozen projects and could only name one that was delivered on time. All the while, logistical and technology-based issues have chipped away at the company’s image as a revolutionary tech startup.
Some clients have ended their relationship with the firm. Other clients, however, are tied to Katerra’s executives, and have drummed up business for the company—a similar arrangement used by WeWork executives, which became a concern for some investors
— The Real Deal
The Real Deal takes an investigative look at some of the recent business dealings and project announcements from Katerra. The vertically integrated construction and modular building components start-up is facing renewed media and financial scrutiny following the recently announced closure of... View full entry
