WeWork now says there’s “substantial doubt” it will be able to stay in business
WeWork’s ‘Substantial Doubt’ About Its Future Marks a Stunning FallPatrick T. Fallon—AFP/Getty Imagesor the past four years, WeWork Inc. has been trying to deliver a turnaround story—one in which the rowdy co-working startup transforms into a stable, profitable public company. It sloughed off Adam Neumann, its rambunctious co-founder and former chief executive officer, and replaced him with an industry veteran boasting a reputation of saving troubled real estate companies.
WeWork’s stock has plunged 98% since the company went public in October 2021, wiping out nearly $9 billion in market value. The stock was trading at 16 cents early Wednesday. Its bonds are also at deeply distressed levels. The company’s 7.875% unsecured notes due in 2025 last changed hands for 33.5 cents on the dollar, according to data from Trace.
Flush with money and momentum, Neumann tried to take the company public in 2019, but the attempt at an initial public offering crashed when investors collectively woke up to the company’s extravagant spending and Neumann’s power-hungry eccentricities. Disclosures in the prospectus set off alarms. He was leasing space to the company in buildings he owned and charged his own business $5.9 million for a trademark on the name “We” that he owned.
The recovery was slow, and it took more than two years until WeWork’s offices were as full as they had been in late 2019. During that time, Mathrani tried other ways to keep the business going. In 2021, he orchestrated a blank-check merger to take WeWork public, at the height of the frenzy for special purpose acquisition companies, or SPACs.
Österreich Neuesten Nachrichten, Österreich Schlagzeilen
Similar News:Sie können auch ähnliche Nachrichten wie diese lesen, die wir aus anderen Nachrichtenquellen gesammelt haben.
WeWork warns of ‘substantial doubt’ over future as going concern\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t
Weiterlesen »
Future of Douglas dental surgery in doubt after contract returnedThe service provider at Hillside Dental Practice in Douglas hands back its contract to Manx Care.
Weiterlesen »
Woman, 29, now in wheelchair and unable to urinate or eat after 'strange' painUK news: Healthy woman, 29, now in wheelchair and unable to urinate or eat food after 'strange' pain led to horror diagnosis
Weiterlesen »
WeWork warns of ‘substantial doubt’ over future as going concern\n\t\t\tKeep abreast of significant corporate, financial and political developments around the world.\n\t\t\tStay informed and spot emerging risks and opportunities with independent global reporting, expert\n\t\t\tcommentary and analysis you can trust.\n\t\t
Weiterlesen »
Future of Douglas dental surgery in doubt after contract returnedThe service provider at Hillside Dental Practice in Douglas hands back its contract to Manx Care.
Weiterlesen »
ESPN launching ESPN BET sportsbookESPN is launching ESPN BET, a branded sportsbook for bettors in the United States by partnering with PENN Entertainment. 'PENN Entertainment is the perfect partner to build an unmatched user experience for sports betting with ESPN BET.” What this means:
Weiterlesen »