Flexible workspace provider WeWork is on the brink of bankruptcy, according to media reports in the US. The Wall Street Journal reported that sources had indicated the company might file for bankruptcy as early as next week.
In September, WeWork’s chief executive office David Tolley revealed the company had kicked off the process of renegotiating “almost all of its leases” globally.
In a letter, Tolley said the flexible workspace company intended to remain in the “majority of our buildings and markets” and had commenced “global engagement” to renegotiate leases.
“We will seek to negotiate terms with our landlords that allow WeWork to maintain our unmatched quality of service and global network, in a financially sustainable manner,” said Tolley. “As part of these negotiations, we expect to exit unfit and underperforming locations and to reinvest in our strongest assets as we continuously improve our product.”
He added: “Let me finish by making one thing clear: WeWork is here to stay. We will remain a global flex space leader and trusted real estate partner to our members. As companies of all sizes seek flexibility in where and how their employees come to work, this initiative best enables us to continue to invest in our products, services, and member experiences to meet evolving workplace needs far into the future.”
Last month, BE News revealed WeWork was closing its 28,892 sq ft 52 Bedford Row site in London, in addition to 133 Houndsditch in the City.
WeWork has been contacted for a comment.
