2023-08-09 12:05:08 ET
Shares of WeWork Inc (NYSE: WE) were cut nearly in half this morning after the shared workspace provider warned of a possible bankruptcy.
WeWork has lost $3.0 billion in 18 months
On Wednesday, the New York-based company said it lost another $700 million in the first six months of this year on top of $2.3 billion it lost in 2022.
WeWork is now left with $680 million of liquidity versus $2.91 billion worth of long-term debt on its balance sheet. Its filing with the Securities & Exchange Commission reads:
Our losses and negative cash flows from operating activities raise substantial doubt about our ability to continue as a going concern.
Note that it’s the same company that was once valued at more than $45 billion. Today, it’s shares are trading for 13 cents only.
WeWork is committed to improving liquidity
According to WeWork Inc, it’s committed to cutting costs and lowering member churn to improve liquidity – and will be open to all strategic alternatives in the event that such measures failed.
We may need to consider all strategic alternatives, including restructuring or refinancing debt, seeking addition debt or equity capital, selling assets, or obtaining relief under the U.S. Bankruptcy Code.
First COVID pandemic and then the economic slowdown has been the downfall of WeWork Inc. The stock market news arrives only days after three of the company’s board members, including chair Daniel Hurwitz resigned.
A miniseries on the hype and eventual demise of WeWork titled “ WeCrashed ” is available on Apple TV+.
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