Global flexible workspace provider, WeWork, and certain of its entities have filed for protection under Chapter 11 of the US Bankruptcy Code, and intend to file recognition proceedings in Canada under Part IV of the Companies’ Creditors Arrangement Act, as it battles with empty offices and huge debts as a result of changing work behaviours brought on by the pandemic.
The proceedings do not affect WeWork’s locations outside of the United States or Canada or WeWork’s franchisees around the world. In the UK, WeWork provides coworking spaces in the cities of Birmingham, Cambridge, Edinburgh, London and Manchester.
In a company statement, New York-headquartered WeWork said it has “commenced a comprehensive reorganisation to strengthen its capital structure and financial performance and best position the Company for future success”. The Company added it “maintains the strong support of its key financial stakeholders and has entered into a Restructuring Support Agreement (RSA) with holders representing approximately 92 per cent of its secured notes to drastically reduce the Company’s existing funded debt and expedite the restructuring process”.
WeWork has said it will further “rationalise its commercial lease office portfolio” and has a “deliberate and value maximising lease rejection plan” that aims to position the company for operational and financial success.
David Tolley, CEO of WeWork said: “Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet. We defined a new category of working, and these steps will enable us to remain the global leader in flexible work. I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement. We remain committed to investing in our products, services, and world-class team of employees to support our community.”
Metro Rod Drainage and Plumbing Survey
Planned, proactive maintenance is a keystone of every FM strategy. However, with current cost constraints, there are many demands on Facilities Managers’ maintenance budgets. When it comes to drainage and plumbing, however, the expense of repairing blockages or dealing with flooding could vastly exceed the cost of preventative maintenance.
Given your role as an FM Professional, we would love to hear your views, challenges & experiences, and opinions on drainage & plumbing within the workplace.
The survey will take just five minutes to complete and offers the chance to win an Amazon Gift Card Worth £100.
Take the survey here.
FMJ Facilities Management magazine providing industry-specific intelligence to FM and property professionals
