WeWork Sends Distress Signal Raises Doubts in Earnings
WeWork has issued a warning about its future viability due to financial losses and the need for cash. The company stated that there is “substantial doubt” about its ability to remain in business over the next year unless it improves liquidity and profitability.
WeWork, which leases and subdivides office spaces for subletting to small businesses and freelancers, faced setbacks after its failed attempt to go public in 2019 due to issues with its founder’s behavior and spending habits. The company plans to address member turnover rates, negotiate lease terms, control spending, and seek additional capital through debt, stock issuance, or asset sales.
BTIG analyst Tom Catherwood downgraded the stock from Buy to Neutral, citing weaker-than-expected occupancy figures and recent executive departures. WeWork leases 6.4 million square feet across more than 70 locations in Manhattan, according to estimates from Crain’s New York Business.
Emily Fu is Content Director of Connect Commercial Real Estate, where she covers the east coast markets, including New York, Boston & New England, and DC & Mid-Atlantic markets. She produces daily news stories as well as longer-form content, ranging from Q&As to thought-leadership pieces. She also writes feature stories for Connect Money.
With previous stints at Reuters, Seeking Alpha, and Commercial Observer, Emily has covered the finance side of the commercial real estate industry, technology, media, telecom (TMT), and fashion. She attended the Columbia Graduate School of Journalism and currently resides in Manhattan.