WeWork's woes seem to have cum splatter sex videosfinally caught up with it. The coworking space company, once valued at $47 billion, announced on Monday that it's filing for bankruptcy in both the US and Canada, but stressed that it still expects to continue business as usual.
"WeWork made the proactive decision to commence a strategic reorganization process to best position the company for future success," CEO David Tolley said in an email to customers. Tolley was appointed to the position in October after serving as interim CEO since May.
"For WeWork, we expect this process to best position our company for stronger operational and financial success, and best enable us to continue to deliver world-class services to our members."
According to WeWork, there will be little difference in the service offered to its users. It will continue to keep coworking spaces in the US and Canada open, staffed, and maintained. Current membership agreements and fees will remain the same as well.
However, WeWork did acknowledge that it is renegotiating its leases, and will be closing some of its less profitable locations. The company stated that it is petitioning the courts for permission to break some of its leases, and hopes it will be approved within the next few weeks.
"As we enter into Chapter 11, we expect to continue exiting unfit and underperforming locations that we believe do not support the best possible member experience that WeWork can provide," said WeWork.
The company will provide moving services and support for anyone whose location closes, helping them to find an alternate WeWork space. This will likely be more useful to businesses based out of specific WeWorks rather than anyone who only occasionally books desks as needed.
WeWork's operations outside the US and Canada won't be impacted by its filing, with the company noting that it "has no plans to initiate restructuring measures in [other regions] at this time."
This bankruptcy announcement doesn't come as a complete surprise. WeWork previously announced in August that it had "substantial doubt" that it could continue to stay in business, reporting a $397 million net loss which sent its stock plunging by 20 percent. Now it seems WeWork is taking drastic action in an attempt to course correct.
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