WeWork plans to file for bankruptcy as early as next week, source says

Re:WeWork plans to file for bankruptcy as early as next week... by api_or_ipa on Tuesday October 31, 2023 @08:12PM (#38093074)

Pretty sad. I hope someone picks up the pieces and keeps the company going. Say what you will about the company and it's leadership, but WeWork as a service was splendid. Yes, there's lots of other short-term office providers, but I never found a competitor that executed on the vision of a world-wide lattice of places from which to work.

Having a place to work vastly opened up my vacation cycles. Instead of travelling for a single weekend, I could go visit a friend in Paris, or Mexico City, or back home, or wherever. During the week when people worked, I would work out of a WeWork. Come 4-5pm, I'd go hangout with the people I wanted to see. Suddenly a long-weekend trip could be feasibly expanded to a week or longer without much hassle.

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Re:WeWork plans to file for bankruptcy as early as next week... by JumpCrisscross on Tuesday October 31, 2023 @08:30PM (#38093186)

> hope someone picks up the pieces and keeps the company going

WeWork is considering filing for Chapter 11 protection. They're not going for liquidation.

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Re:WeWork plans to file for bankruptcy as early as next week... by christophilus on Tuesday October 31, 2023 @09:02PM (#38093396)

Not many people understand what that means. I remember Romney saying that GM needed to go through bankruptcy (meaning chapter 11) back when he was running for president. He got crucified for saying that, but he wasn’t wrong, and iirc, they did end up in chapter 11.

Hopefully, WeWork restructures successfully. I’ve really enjoyed the few I’ve visited, and I think there’s a real business under all the nonsense.

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Re:WeWork plans to file for bankruptcy as early as next week... by JumpCrisscross on Tuesday October 31, 2023 @09:08PM (#38093432)

> remember Romney saying that GM needed to go through bankruptcy (meaning chapter 11) back when he was running for president

Investment bankers, being salespeople, solved this in the 80s: companies in chapter 11 are restructuring or reorganizing. Not bankrupt.

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Re:WeWork plans to file for bankruptcy as early as next week... by cobertos on Tuesday October 31, 2023 @09:33PM (#38093597)

Doesn't the bankruptcy court liquidate pieces of the company on behalf of the creditors if that is part of the agreement that is reached?

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Re:WeWork plans to file for bankruptcy as early as next week... by hn_throwaway_99 on Tuesday October 31, 2023 @09:46PM (#38093683)

That's Chapter 7 bankruptcy.

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Re:WeWork plans to file for bankruptcy as early as next week... by Spooky23 on Tuesday October 31, 2023 @11:35PM (#38094337)

Not typically. The court basically reorganizes debts, etc. That may include sale or liquidation of some assets.

In this case, I’d venture to guess that leases are the biggest liability, and given the market, I’d imagine the landlords will take a bath.

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Re:WeWork plans to file for bankruptcy as early as next week... by fsckboy on Tuesday October 31, 2023 @08:26PM (#38093167)

cause of final death: killed "from Covid", not "with Covid".

I just want back the economy that could keep WeWork afloat.

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Re:WeWork plans to file for bankruptcy as early as next week... by tharkun__ on Tuesday October 31, 2023 @08:41PM (#38093268)

You want mandatory return to office? Really?

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Re:WeWork plans to file for bankruptcy as early as next week... by mkwarman on Tuesday October 31, 2023 @08:47PM (#38093300)

I think it's likely they were literally referring to the economy rather than return to office, considering WeWork stands only to lose when employees work from their employer's office

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Re:WeWork plans to file for bankruptcy as early as next week... by cowsandmilk on Tuesday October 31, 2023 @09:07PM (#38093426)

In their 2019 S-1, WeWork stated 40% of their memberships were from companies with over 500 employees. For many companies, moving to remote did mean terminating WeWork memberships.

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Re:WeWork plans to file for bankruptcy as early as next week... by tharkun__ on Tuesday October 31, 2023 @09:40PM (#38093657)

This is why I commented the way I did but I guess your parent found it down-vote-worthy.

One of my recent companies was one of those. A bit smaller but their entire office footprint was at WeWork offices in various places. Zero remote before Covid. Had to be in a WeWork office where they had a presence. Not even just "a" WeWork.

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Re:WeWork plans to file for bankruptcy as early as next week... by mkwarman on Tuesday October 31, 2023 @10:13PM (#38093838)

> I guess your parent found it down-vote-worthy.

I didn't downvote you. I don't even have the ability to downvote on HN yet. I just interpreted the parent comment differently and thought the different perspective could help provide context. Especially since I was similarly surprised at the idea that someone would prefer mandatory return to office

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Re:WeWork plans to file for bankruptcy as early as next week... by mkwarman on Tuesday October 31, 2023 @10:08PM (#38093801)

Interesting! Thanks for educating me. I always assumed significantly more of their business was remote folks that didn't want to work from their actual home.

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Re:WeWork plans to file for bankruptcy as early as next week... by fsckboy on Tuesday October 31, 2023 @08:48PM (#38093315)

yes, I was, motivated by my extensive studies in the dismal science and finance, and my stock portfolio :)

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Re:WeWork plans to file for bankruptcy as early as next week... by tharkun__ on Tuesday October 31, 2023 @09:58PM (#38093748)

The commercial real estate portion of my portfolio agrees with you.

The person that loves not having to go to an office does not ;)

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Re:WeWork plans to file for bankruptcy as early as next week... by fsckboy on Tuesday October 31, 2023 @08:48PM (#38093310)

>You want mandatory return to office? Really?

I have absolutely no reason to leave my house, and my intellectual tendencies keep me occupied without any other people around. Personally? I would welcome a staffed office to go to. I go to coffeeshops (with the other regulars) and it's nice but it's not the same

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Re:WeWork plans to file for bankruptcy as early as next week... by hodgesrm on Tuesday October 31, 2023 @08:38PM (#38093242)

That would include low interest rates that made funding WeWork plausible/possible. That's probably not coming back for a while.

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Re:WeWork plans to file for bankruptcy as early as next week... by sweezyjeezy on Wednesday November 01, 2023 @04:33AM (#38095828)

Wework started spiralling in 2019, it was never going to stay afloat.

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Re:WeWork plans to file for bankruptcy as early as next week... by xyst on Tuesday October 31, 2023 @08:51PM (#38093332)

Hope not. Those co-working spaces were a disaster.

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Re:WeWork plans to file for bankruptcy as early as next week... by athrun on Tuesday October 31, 2023 @08:54PM (#38093346)

I agree the global experience WeWork provides is really unique.

The question is whether that product would have ever been sustainable—had the company been better managed.

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Re:WeWork plans to file for bankruptcy as early as next week... by chrischen on Wednesday November 01, 2023 @05:08AM (#38096043)

Regus is still worth billions.

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Re:WeWork plans to file for bankruptcy as early as next week... by skeeter2020 on Tuesday October 31, 2023 @09:30PM (#38093573)

Unless you're willing to pay a ridiculously high premium for this, the benefits WeWork's provided you still doesn't work as a business model.

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Re:WeWork plans to file for bankruptcy as early as next week... by aurareturn on Tuesday October 31, 2023 @10:24PM (#38093899)

That's right. A friend of mine sells premium offices and he's been saying WeWork's business plan made no sense at all for as long as I can remember.

Basically, in any premium office, you want to maximize the space for as many high value desks as possible. WeWork often spends a huge part of its space for perks and temp desks. In addition, WeWork attracts the startups/small business/solo crowd and those are far less stable customers than your money making enterprises.

He was sure that WeWork had no future. He was right.

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Re:WeWork plans to file for bankruptcy as early as next week... by criddell on Tuesday October 31, 2023 @10:40PM (#38093999)

Was working remotely like that difficult from a tax perspective? I know a lot of places will require you to file even if you are only working there a single day.

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Re:WeWork plans to file for bankruptcy as early as next week... by chrischen on Wednesday November 01, 2023 @05:08AM (#38096047)

Single day is likely unenforceable.

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Re:WeWork plans to file for bankruptcy as early as next week... by samuli on Wednesday November 01, 2023 @02:32AM (#38095203)

We used to be in Regus' offices, which had the option to use their spaces in other countries too. Not having used WeWork I do not know how it compares, but at least you can use Regus' office in Paris or Mexico City if you want.

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