(AOF) – WeWork plunged 38.04% to 0.13 dollars on Wall Street. The workspace provider yesterday warned the American stock market policeman that he feared for his survival. “There is substantial doubt about the Company’s ability to continue as a going concern,” WeWork said in an SEC filing. The shared office operator is sounding the alarm given the “expected losses and cash requirements, combined with rising member churn and current levels of liquidity”.
“The survival of the company depends on the successful execution of the plan laid down by management over the next twelve months”.
WeWork, a New York firm launched in 2010, suffered a net loss of $397 million in the second quarter, of $0.21 per diluted share, against a loss of $0.76 a year earlier.
In this quarter, its revenues are however up 3.6% to 844 million dollars against 815 million dollars a year ago while its liquidities have melted by 67% over one year to 205 million dollars.
“In a challenging operating environment, we delivered solid year-over-year revenue growth and dramatic improvement in profitability,” commented David Tolley, interim CEO of WeWork.
“Oversupply in commercial real estate, increasing competition in flex spaces and macroeconomic volatility resulted in higher churn and weaker demand than we had anticipated, which led to slightly lower memberships,” he added.
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