2y ago

WeWork plans to file for bankruptcy as early as next week, source says

www.reuters.com

Technology @lemmy.world

L4sBot @lemmy.world

BOT

2y ago

WeWork plans to file for bankruptcy as early as next week, source says

www.reuters.com /markets/deals/wework-plans-file-bankruptcy-early-next-week-wsj-2023-10-31/

52 comments

Uber and AirBnB next.
I still don't quite understand why a "taxi" and a "hotel" company are considered tech companies.
- Because they both disrupted their respective markets with little more than an app.
- I don’t quite understand how MargotRobbie is on Lemmy moderating an android community.
  
  Because I have way too much free time now that I'm on strike, and it's also really funny.
- The tech bit just seems to be the ability to slurp money out of other people's industries, while avoiding all regulation and responsibility.
  You can stick the food delivery people with them.
Will they change their name to Wedidn'tWork?
- WeUsedToWork
  
  Wew Ork, a new mercenary outfit for Russia.
- Oh it worked. They made a shit-ton, paid the execs, and then had no more money. That was the plan. 100% success.
  
  I get that they can argue they didn't deliberately do it, but there must be some kind of law that can be used to sue the execs and shareholders for doing that (if proven), right?
WeWork was nothing but a scam to fleece money from investors. Only a fool would believe a real estate company is a tech company. And that fool is Masayoshi Son.
- WeWork: It's not a real estate company, it's a tech company!
  Theranos: It's not a healthcare company, it's a tech company!
  Juul: It's not a vape company, it's a tech company! (though oddly enough, they would have also accepted, "It's not a vape company, it's a healthcare company!)
  FTX: It's not a ~~pyramid scheme~~ financial company, it's a tech company!
  
  What is sad is how we had to establish human rights on a computer in the 1990s, and then establish them again on the internet in the 2010s and now on a smartphone
  Because with each iteration our legal system sides with overreaching law enforcement whenever it's a new state of technology.
- The free wine and kombucha they had on tap was nice though.
- There will come a day when people will realize that even tech companies aren't worth that much.
  
  Older folk who went through the dotcom bubble burst should know, but they don't somehow. Oh well a third once in a lifetime market crash in 20 years would just be icing on the molten icecaps cake
- Why do you want to fuck spez?
WeDontWorkAnymore
Any idea if this is a proper (shut down) bankruptcy, or a get cheaper leases bankruptcy?
- It's in the article:
  New York-based WeWork is considering filing a Chapter 11 petition in New Jersey
  
  And that's the restructuring one? Does that let them escape or decrease their leases?
  (Not familiar with American bankruptcy laws(...or any bankruptcy laws))
- It’s a “we paid our execs all our cash” bankruptcy
- Based on the debts and lack of revenue they have. My guess it will be chapter 7 (wind up and liquidation) and not 11 (debt restructure).
  
  so you didn’t read the article
They're still here???
Genuinely not sure what the business model was here, or how it attracted so many investors.
"So we get a bunch of office space, right? And then we rent it out not to companies, but to individuals, who then get all the downsides of working in a distracting room full of noisy bastards, while not actually interacting with any of the people they're supposed to be working with."
"I'm in! How much do you need?"
- You just described how regular office jobs are 😆
This is the best summary I could come up with:
Oct 31 (Reuters) - WeWork (WE.N) plans to file for bankruptcy as early as next week, a source familiar with the matter said on Tuesday, as the SoftBank Group-backed company struggles with a massive debt pile and hefty losses.
New York-based WeWork is considering filing a Chapter 11 petition in New Jersey, the WSJ reported, citing people familiar with the matter.
Earlier on Tuesday, WeWork said it had entered into an agreement with creditors for temporary postponement of payments for some of its debt, with the grace period nearing an end.
The company has been in turmoil ever since its plans to go public in 2019 imploded following investors' skepticism over its business model of taking long-term leases and renting them for the short term and worries over its hefty losses.
Its major backer, Japanese conglomerate SoftBank, sunk tens of billions to prop up the startup, but the company has continued to lose money.
WeWork raised "substantial doubt" about its ability to continue operations in August, with numerous top executives, including CEO Sandeep Mathrani, departing this year.
The original article contains 296 words, the summary contains 177 words. Saved 40%. I'm a bot and I'm open source!
So... most people are not into paying expensive dues to use a desk? Who knew.
- shared table or restaurant booth.
  Only got a personal desk if you nabbed a phone booth or you had a company that paid even more for a room w/desks.
  
  You mean those things that restaurants and coffee shops have... for free?
- I use a co-working space every day. It's normal
Haven't they been circling the drain for some time now?
Oh no! Anyway…
Is it just me, or is this the wrong community for this. WeWork isn't a tech company or product.
- I used to work for a tech company that rented a corner office in a WeWork
- This community seems to have become a catch-all for whatever.
  
  It does seem that way.
We oink
WeNeedWork
Good, fuck this guy
- 'this guy' is already out. Made billions
WeFailedToWork

52 comments