WeWork Faces Uncertain Future: Doubts of Going Concern and Possible Bankruptcy Arise

India, 9th August 2023: Workspace provider WeWork Inc has cast doubt on its ability to continue operating as a going concern, raising concerns about a potential bankruptcy. The company’s shares plummeted by 27 percent in after-hours trading, and three board members have resigned. WeWork has also cautioned that it must secure additional capital within the next year to maintain its financial stability and liquidity.

The company expressed the need to explore various options, such as debt restructuring, equity capital infusion, and potential asset sales. Should efforts to improve liquidity and profitability prove unsuccessful, WeWork may even seek relief under the US Bankruptcy Code, according to a statement by the company. (Source: CNBC)