WeWork may need a new bankruptcy loan due to slow progress on rent negotiations, according to an attorney for the company. The company s post-bankruptcy plan relies on reduced rent costs, but landlords have criticized their tactics.
Even at a time when WeWork struggles to keep operations afloat, WeWork India said it clocked revenues of Rs 1,400 crore in FY23, had an EBITDA of Rs 250 crore and a profit after tax of roughly Rs 60 crore.
The SoftBank-backed company has been in turmoil ever since its plans to go public in 2019 imploded after investors recoiled at its hefty losses, corporate governance lapses and the management style of then founder-CEO Adam Neumann.
The flexible workspace provider is running out of options and cash. The company’s second-quarter results suggests the next 12 months will every bit as fraught as WeWork’s near implosion four years ago. Absent effective remedial action or another capital raise, it could be lights out