WeWork warns it has 'substantial doubt' about whether it can keep going as a business
In its second quarter earningson Tuesday, the company said there's"substantial doubt" about its ability to keep going as a business.
The company issued what's known as a"going-concern" warning. Publicly traded companies typically issue these when they're worried, broadly speaking, that they don't have the money to pay their bills over the next year, an S&P Global report on the topicAs for WeWork, its statement pointed to"losses and projected cash needs, combined with increased member churn and current liquidity levels.
"Although we have more work to do, the talent and energy of the WeWork team is extraordinary and we are resolutely focused on delivering for our members for the long term," David Tolley, the company's interim CEO, said in a statement."The company's transformation continues at pace, with a laser focus on member retention and growth, doubling down on our real estate portfolio optimization efforts, and maintaining a disciplined approach to reducing operating costs.
He pointed to what he called"excess supply" in commercial real estate, along with increased competition when it comes to offering flexible work space, as challenges for the business that led to higher member turnover and softer-than-expected demand. The company also reported a decline in memberships.
The warning doesn't mean anything immediately changes for WeWork customers."We are confident in our ability to meet the evolving workplace needs of businesses of all sizes across sectors and geographies, and our long term company vision remains unchanged," Tolley said.It also outlined a plan for the coming year that it said will include reducing rental costs, raising capital, and increasing revenue by improving sales and reducing the number of canceled memberships.
Brasil Últimas Notícias, Brasil Manchetes
Similar News:Você também pode ler notícias semelhantes a esta que coletamos de outras fontes de notícias.
WeWork expresses 'substantial doubt' about its ability to stay in businessWeWork's second quarter earnings release reveals that the company has concerns about its future due to losses, projected cash needs, and increased member turnover. The company's management has outlined a plan to improve its financial health, but acknowledges that its ability to continue operating is dependent on successful execution over the next year.
Consulte Mais informação »
WeWork expresses 'substantial doubt' about its futureWeWork has revealed concerns about its ability to continue operating as it tries to improve its financial situation. The company's shares dropped by 33% in after-hours trading. WeWork reported a loss of $397 million in the second quarter and currently has $680 million in liquidity.
Consulte Mais informação »
WeWork flags 'substantial doubt' about its ability to stay in businessWeWork Inc. disclosed Tuesday that there’s “substantial doubt” about its ability to continue operating, as the company seeks to improve its financial positioning. Shares of the company, which provides co-working spaces, were down 33% in Tuesday’s after-hours trading. WeWork lost $397 million in the second quarter and has $680 million...
Consulte Mais informação »
Wework raises going-concern doubt, shares tankWeWork Inc expresses significant doubt about its ability to continue as a going concern, resulting in a 19% drop in its shares during extended trading.
Consulte Mais informação »
WeWork Raises Doubt About Its SurvivalWeWork expresses concerns about its ability to continue operating due to losses and a decreasing cash reserve, as the way people work undergoes significant changes. The company has issued a going-concern warning as its co-working clients are canceling memberships at a higher rate than anticipated. WeWork has outlined plans to enhance liquidity and profitability.
Consulte Mais informação »
San Jose Office Building Tied to WeWork Exec Falls Behind on PaymentsA downtown San Jose office building, owned by a group that includes WeWork's co-founder, has missed at least one loan payment.
Consulte Mais informação »