UK landlords could lose £3.1bn in WeWork collapse
If WeWork files for bankruptcy commercial landlords in the UK could lose £3.1bn in rental commitments, according to analysis from The Telegraph.
The company works by leasing buildings from landlords and subleasing them to smaller businesses like tech startups.
However it’s spending was out of hand under previous CEO Adam Neumann, and the current management has struggled to turn things around amidst the pandemic.
The company, which went public in 2021, has lost 97% of its value over the past 12 months alone.
WeWork is London’s largest private tenant, with 3 million square feet of office space.
The company is in the process of selling its 99 Victoria Street office, which is under offer to a subsidiary of Fidelity.
David Tolley, interim chief executive of WeWork, said: “Excess supply in commercial real estate, increasing competition in flexible space and macroeconomic volatility drove higher member churn and softer demand than we anticipated, resulting in a slight decline in memberships.”