WeWork India’s Clarification After Global Unit Files For Bankruptcy
WeWork India on Tuesday said it operates independently and WeWork Global’s bankruptcy filing in the US will not impact its stakeholders in India. WeWork Inc, a co-working company, was once a high-flying start-up valued at $47 billion that has struggling in the aftermath of the pandemic.
“WeWork India is a separate entity from WeWork Global. The recent Chapter 11 filing will not impact our members and stakeholders in India. We will continue to operate and serve our members, landlords, and partners as usual. Committed to the growth and success of our business,” it said in a post on X, formerly Twitter.
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WeWork India said its global unit has initiated an important strategic reorganisation process in the US, along with recognition proceedings in Canada in a step towards improving its business’ economics.
The bankruptcy filing allows it to keep operating as it chalks out a debt repayment plan.
As of June30, the company maintains real estate presence across 777 locations in 39 countries, but remains unprofitable. However, WeWork India has been profitable since 2021, the statement said.
“The process restructures the debts and the leases of WeWork Global in the US and Canada. During this period, we will continue to hold the rights to use the brand name as part of the operating agreement, while serving our members, landlords, and partners as usual,” it said.
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WeWork India said it is backed by majority stake holder Embassy Group, and is committed to investing in the future of its business.
Post a commentWeWork Inc went public in 2021, two years after its initial public offering (IPO) failed amid investor concerns over valuation and growth prospects. Founder Adam Neumann had to resign as CEO following a fall in WeWork’s valuation.
