WeWork On The Rocks Again – What Comes Next

Well-informed Forbes.com readers are surely aware that co-working giant WeWork stated last week in a 10-Q filing that “substantial doubt exists about the company’s ability to continue as a going concern”. Given that WeWork lost about $600 million in the last six months and only has approximately $680 million in liquidity currently available, I can see why that warning was necessary. Looking ahead, if WeWork does actually close the adverse impact on landlords could be significant if its leases are not picked up by another co-working operator or several operators.

Accordingly, any future lenders or investors will have to think very carefully before committing additional funds to what has been a money-losing business from day one. Indeed, it is a distinct possibility that other coworking operators will look to scoop up the profitable locations in a bankruptcy sale.