WeWork Halting Property Lease Deals: Report
Troubled office-sharing company WeWork reportedly is halting new lease deals with property owners in the U.S.
According to a report in the Financial Times early Friday citing people familiar with the matter, the move is part of We Work’s effort to cut costs.
Representatives for WeWork could not be reached for comment on the report.
On Tuesday, WeWork CEO Adam Neumann stepped down as the company attempts to save its flailing initial public offering. Neumann, 40, will stay on as parent We Co.’s non-executive chairman.
We’s IPO plans stalled after investors balked at issues surrounding the company and Neumann. Many have criticized his behavior, possible conflicts of interest and control of the company.
The We Co. reported that revenue more than double to $1.54 billion during the six months ended in June, according to its IPO prospectus, filed last month. Its operating loss also more than doubled in that time, to $1.37 billion.
There is a strong incentive for SoftBank, the largest investor in WeWork, to bring the company to market, given that an IPO is a condition for WeWork to receive a large line of credit to keep it going.