WeWork’s Singapore Outlets To Continue Operating Despite Bankruptcy
SINGAPORE – Even though WeWork has filed for a Chapter 11 petition (bankruptcy protection) under the US Bankruptcy Code, the company’s 14 coworking centres here will remain open. There are also no plans to downsize its Singapore footprint, reported The Business Times on Tuesday morning (7 November, SGT).
As part of its restructuring process, which will entail improving its balance sheet and rationalising its office lease portfolio, WeWork is asking for the power to reject leases at certain locations which are mostly non-operational. All members of the coworking space operator that are affected by the bankruptcy were notified in advance.
More importantly, it was clarified that WeWork’s business in Singapore will not be impacted by the bankruptcy proceedings.
“WeWork’s locations outside the United States and Canada are not part of this process. WeWork’s franchisees around the world are similarly not affected by these proceedings,” the coworking space operator announced on Tuesday (7 November).
When asked to comment, a representative of WeWork Singapore said “there are no plans to downsize or shut down any of the locations here for now, even as we are in a real estate rationalisation exercise globally.”
“Singapore remains a key market for WeWork, and we are fully committed to providing our members here with world-class, flexible workspace solutions for the long term. Our commitment to Singapore is unwavering as we continue to work collaboratively with our landlord partners, aiming to craft solutions that set all parties up for sustainable success.”
In August 2023, WeWork said there was “substantial doubt” about its ability to continue its business operations. The coworking space operator said this would depend on whether it can enhance liquidity and profitability in the next 12 months. Hence, it would focus on increasing revenue, slashing office rental costs, raising capital, and negotiating more favourable office leases.
During the first half of the year, WeWork posted a net loss of US$696 million versus a net loss of US$1.1 billion in H1 2022.