Remember WeWork? I’ll pause while you think way back to when they were popular, and not just the punchline of a joke or the topic of a popular TV mini-series. There’s been a rumor going around that they are insolvent (again), and may be heading toward bankruptcy.
On Wednesday the company’s stock sank 50% when news hit the street that they may be filing for bankruptcy in the next few weeks. This is a company that had raised roughly $7 billion dollars in funding, almost went public at a valuation of $47 billion dollars, their co-founder and CEO Adam Neumann was fired (but not before leaving with a $1 billion dollar severance/stock/buyout/bribe or whatever you call it), then they eventually went public at a $9.5 billion valuation.
How bad have things gotten at WeWork? Well it turns out the “company had net long-term debt of $2.9 billion as of June end and more than $13 billion in long-term leases” against $844 million in revenue for their June 2023 quarter with a loss of $397 million. So yea, not a lesson in how to run a profitable public company.
WeWork plans to file for bankruptcy as early as next week, source says