HomeTop U.S. NewsWeWork Says it Has “Substantial Doubt” About Its Ability to Continue Operating

WeWork Says it Has “Substantial Doubt” About Its Ability to Continue Operating

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.  

Marriott Projects Revenue Growth Amid Resilient Travel Demand

Marriott International forecasted on Wednesday that 3% to 6% growth in its annualized global revenue per available room for the two years ending 2025 as the...

Dollar and Stocks Steady as Bonds Ease From Record Highs

The U.S. dollar and stocks in New York stabilized on Wednesday, while U.S. Treasury Yields retreated from their 16-year high, easing pressure on the...

New Home Sales Plummet in August

Sales of new U.S. single-family homes plunged in August as the 30-year mortgage rate rose past 7%, thereby discouraging would-be buyers. According to data...