WeWork Raises ‘Substantial Doubt’ About Staying in Business
bloomberg.com
bloomberg.com
Especially the closed / private offices that they rent to companies - those just seemed dead. It seemed so wasteful and “obvious” that it couldn’t last?
The amenities they offer are pretty great, it’s comfortable, and there will definitely be less choice in terms of flexible places to work out of if they go under.
This all reminds me - I co-ran a small coworking space many years ago. Our first “good” year was making $18 in profit. We celebrated our non-losses because it was a big deal… it’s a really tough business to be in.
> As a result of our losses and our projected cash needs, which have been impacted by the recent increases in member churn, combined with our current liquidity level, substantial doubt exists about the Company’s ability to continue as a going concern over the next 12 months.
The same could have been written in the IPO filing.
> As a result of our losses and our projected cash needs, which have been impacted by the recent increases in member churn, combined with our current liquidity level, substantial doubt exists about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is contingent upon successful execution of management’s intended plan over the next twelve months to improve the Company’s liquidity and profitability, which includes, without limitation:
Start at “Son: What does your company do?”
Someone who can extract that kind of money for WeWork and still manage to stay on the legal side of the line is brilliant.
Seems like a true Hacker to me.
But over time, the awe developed. The dude is a living cartoon character, but still managed to find a way to pull off his thing.
If you want to look up to that, that’s your prerogative. I reserve respect for people who make value and create innovation and not just repackage conventional business practices and sell it to the investor class (more common than it should be).
I mean I respect the salesmanship, but in terms of creating value for the world, whether WW happened or it didn’t happen few people will care in a few years — it didn’t change the world or make anyone lives better… so was it really “successful” or did it just redistribute a lot of investor capital using clever decks and expensive real estate?
I mean ra ra Adam Neumann — good for you dude.
But if there’s a business that makes a difference in the world or matters to the course of anybody in the long term, WW probably isn’t on many people’s list.
Now he's got the wealth for a more impactful next chapter. Trying to get fabulously wealthy is difficult enough; trying to do that while having a major impact on the world is even more difficult. Not saying his second act will necessarily be great, but at least he's got a platform to work from now.
Likely they will use bankruptcy or a complete restructuring (perhaps w re-brand) and use it to renegotiate leases
They’re not particularly social, however. I’d honestly expect them to be able to ticket networking events, for the actual members. I’d probably be interested in attending, it’s not that easy to find or meet professionals in the same city, with similar interests…
All of them said the WeWork model was never going to work. WeWork caters to startups/small companies and individuals. This group of customers has the least amount of money to spend and is the most unstable. In addition, WeWork's average floor plan has way too much space not being used for desks.
Contrast WeWork with a traditional office real estate company such as Regus. Traditional offices use nearly every inch of the floor plan for desks. They cater to profitable businesses or build custom floor plans for large corporates. The $/space and stability of these profitable businesses is what makes Regus profitable while WeWork never made any money.
Anyways, I'm sad to see WeWork go. They converted VC money to nice offices affordable to startups and individuals. That era is ending now.