WeWork files for bankruptcy in US, no plans to downsize or shut Singapore locations
Jessie Lim
IT WILL be business as usual at WeWork Singapore’s 14 locations, even as the co-working giant files for bankruptcy protection in the United States.
WeWork has filed for a Chapter 11 petition under the US Bankruptcy Code, which will involve rationalising its commercial office lease portfolio and improving its balance sheet.
As part of its restructuring process, WeWork is requesting the ability to reject leases at certain locations which are largely non-operational. All affected members have received advance notice.
“WeWork’s locations outside the United States and Canada are not part of this process. WeWork’s franchisees around the world are similarly not affected by these proceedings,” the New York Stock Exchange-listed company said on Tuesday (Nov 7).
A WeWork Singapore spokesperson told The Business Times: “There are no plans to downsize or shut down any of the locations here for now, even as we are in a real estate rationalisation exercise globally.”
He added: “Singapore remains a key market for WeWork, and we are fully committed to providing our members here with world-class, flexible workspace solutions for the long term. Our commitment to Singapore is unwavering as we continue to work collaboratively with our landlord partners, aiming to craft solutions that set all parties up for sustainable success.”
In August, WeWork raised “substantial doubt” about its ability to continue as a going concern. The company said this would depend on whether it can improve liquidity and profitability over the next 12 months, and that it would focus on reducing rental costs, negotiating more favourable leases, increasing revenue and raising capital.
The company recorded a net loss of US$696 million for the first half of 2023, narrowing its losses from US$1.1 billion in the year-ago period.
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