WeWork, once the leading provider of coworking spaces, is on the brink of collapse. The company revealed this in a recent filing with U.S. Securities and Exchange Commission (SEC).
Alongside sharing its second-quarter earnings report, WeWork issued a warning about its ability to continue operating due to mounting debt and loss of customers.
“Our losses and negative cash flows from operating activities raise substantial doubt about our ability to continue as a going concern,” said the company.
The company added that it will “consider all strategic alternatives,” including bankruptcy, if it doesn’t manage to improve “our liquidity position and the profitability of our operations.”
Founded in 2010, WeWork experienced a meteoric rise that saw the company be valued at $47 billion at one point. However, the company failed to go public in 2019 after a deeper dive into its finances raised alarms among investors. Its most prominent backer SoftBank ended up taking control of the company and took it public with the help of a special-purpose acquisition company in 2021.
Since then, WeWork failed to find an efficient strategy to deal with the financial challenges while its stock embarked on a steady downward trajectory. The company’s shares dipped below $1 in March and had their last closing price of $0.18, representing an 86.79% year-to-date loss.