According to the bankruptcy filing, WeWork’s operations in the United States and Canada lost $122 million in February alone.
Attend Inman Connect in Las Vegas July 30-August 1! Seize the moment and take control of the next era of real estate. Through immersive experiences, innovative formats and an unparalleled lineup of speakers, this gathering becomes more than just a conference, it becomes a collaborative force shaping the future of our industry. Grab your tickets now! learn more.
Nearly five months after WeWork filed for Chapter 11 bankruptcy protection, the co-working giant is still burning through cash reserves and trying to downsize.
According to bankruptcy documents filed this weekend, first Reporter Bisnow, The commercial real estate company’s operations in the U.S. and Canada lost $122 million in February alone as it struggled to renegotiate better leases with landlords.
WeWork had revenue of $83.8 million in February and expenses of $197.8 million. The loss in January was larger at $153.7 million, while cash reserves fell from $113.3 million to $89.6 million from the end of January to the end of February.
The filing also revealed that WeWork has reached agreements with four landlords to stay at its locations at reduced rents and has rejected a lease for a Salt Lake City location, bringing the company’s total number of hypothetical leases to 25 and rejections of 94 leases. Bankruptcy period.
When it filed for bankruptcy last November, WeWork had 292 office locations in the United States and Canada. The future of the remaining 173 North American locations remains in doubt as leases are still being negotiated, the report said.
The company is reportedly deciding whether to renegotiate or reject its remaining lease as it accepts a $500 million takeover offer from company founder Adam Neumann. Adam Neumann was ousted during an IPO bid, but was ousted when the company’s massive losses and financial mismanagement were revealed.
Lawyers for Neumann’s new residential real estate venture, Flow, are seeking to enter court proceedings after their takeover bid was ignored by the company, according to court documents filed on March 26.
Other recent court filings show WeWork has been withholding rent from some landlords while it renegotiates lease terms. A WeWork spokesperson said Bisnow The company is using every tool at its disposal to get better lease deals.
“We are grateful for the constructive engagement of our owners and remain committed to finding mutually beneficial solutions that are more consistent with today’s market conditions and will allow us to successfully move forward with the restructuring process,” the spokesman said, speaking on condition of anonymity.
Despite mounting losses, WeWork announced on tuesday The company expects to emerge from Chapter 11 bankruptcy protection by the end of May through a lease modification, new management agreement or lease rejection.
“We are working hard to build a strong and sustainable WeWork,” WeWork CEO David Tolley said in a statement. “The scale, scope and complexity of our real estate restructuring is unprecedented in our industry, and to date, we have Significant progress has been made in optimizing the building footprint.”
Email Ben Vader
