WeWork, the co-working space company that went from a $47 billion valuation to a cautionary tale in business schools, warned Tuesday that it is at risk of bankruptcy.
means a business has enough resources to stay afloat. The company reported about $2.9 billion in long-term debt as of June 30.
WeWork said that if its situation does not improve, it will have to consider options such as selling assets, reducing business activities and “obtaining relief under the U.S. Bankruptcy code,” according to the filing. Its stock has been trading below $1 for several months and closed at about“People who follow the company have been expecting this for a while,” said Erik Gordon, a professor at the University of Michigan’s Stephen M. Ross School of Business. “The clock is ticking down for WeWork.
In a statement Tuesday, the company struck an optimistic tone, underscoring that it was able to grow its second-quarter revenue by 4 percent year-on-year. It added that it is focused on increasing memberships, optimizing the terms of its real estate portfolio and reducing its operating costs, and that its 777 locations worldwide are occupied at
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