WeWork’s UK operation now faces “material uncertainty”
London based WeWork International, has warned of “significant doubt on the company’s ability to continue as a going concern”, after posting a £123m loss and revealing it owes its parent company £731m.
WeWork International, acts as a holding company for investment in the UK operations of its parent company, and collects management fees and service revenue, on its behalf. Being a separate identity, WeWork International was not directly affected by the US firm filing for Chapter 11 bankruptcy, back in November. Writing was on the wall, however, with the New York based parent company warning of “significant doubt” about its ability to continue as a going concern some three months ago.
Last month, WeWork said it was “business as usual” for its UK operations with 10 York Road, near Waterloo Station, being the most popular WeWork site in the world in 2023. It had, however, left a number of its London locations, and is currently considering exiting three more sites.
A spokesperson for WeWork said: “These standalone accounts, which represent the 2022 financial year, refer only to WeWork International, a services holding company which generates revenue through service, management, and franchise fees.”
”These accounts show a year on year improvement relating to both revenue and operating losses, driven by the recovery from the pandemic and companies continuing to recognize the value of flexible space solutions in this new era of work.”
”Since 2022, WeWork has taken decisive steps to strengthen its balance sheet on a global scale, and continues to do so today. The UK and Ireland remain key markets for WeWork, particularly London which saw its best month on record for bookings in November.”