WeWork to file for bankruptcy

[newwurldmn]

It's so annoying this business model raised 22bil

Seriously, can a bro raise few mil without convicing you there is a God? ....ugh...

there are tons of startups that are repackaged regular companies with crazy valuations: peloton, away, warby Parker, WeWork, the razor companies, the mattress companies, the countless food companies, mommy companies, etc.

I don’t get it.

 

[engineering]

I wonder what this will do for the banks. As long as they could claim they were going to pay them back and/or occupy space the could keep the value on their real estate holdings up.

Now do they have write down the value of a bunch of loans that could crash more banks?

 

[murray t turtle]

It's so annoying this business model raised 22bil

Seriously, can a bro raise few mil without convicing you there is a God? ....ugh...

%%
LOL
WELL someone made a $ million off ''pet rocks'' Buy RE,[good location] they are not making anymore. Back to work I like [W]work anyway.

 

[TheDawn]

Reflective of the broader commercial real estate market, WeWork will be filing for bankruptcy. There were questions -- even before the pandemic shut down onsite work -- if the flexible workspace business concept behind WeWork was actually viable in the long term. Plus there were a number of unique problems WeWork had.

The broader question is when (and if) the commercial real estate sector will recover. Will CEOs demands that employees return to work drive a resurgence? Or are commercial buildings just doomed to be converted into warehouses and residences? What about all the REITs that invest in the commercial real estate sector -- time to go long or to short?

WeWork to file for bankruptcy after once being valued at $47B: report
https://nypost.com/2023/10/31/business/wework-to-file-for-bankruptcy-it-was-once-valued-at-47b/

Flexible workspace provider WeWork plans to file for bankruptcy as early as next week, a source familiar with the matter said on Tuesday, in a stunning reversal of fortune for a company that was once privately valued at $47 billion.

Shares of the company fell 30% in extended trading after the Wall Street Journal first reported the news.

They have fallen roughly 96% this year.

New York-based WeWork is considering filing a Chapter 11 petition in New Jersey, the WSJ reported, citing people familiar with the matter.

WeWork did not immediately respond to a Reuters request for comment.

Earlier on Tuesday, the debt-laden firm decided to withhold interest payment of about $6.4 million.

The company has been in turmoil ever since its plans to go public in 2019 imploded following investors skepticism over its business model of taking long-term leases and renting them for the short term and on worries over its hefty losses.

WeWork’s woes did not abate in subsequent years.

It finally managed to go public in 2021 at a much-reduced valuation.

Its major backer, Japanese conglomerate SoftBank, sunk tens of billions to prop up the startup, but the company has continued to lose money.

WeWork raised “substantial doubt” about its ability to continue operations in August, with numerous top executives, including CEO Sandeep Mathrani, departing this year.

Co-founded by Adam Neumann, WeWork began operations in 2010 in New York, catering mainly to freelancers, startups and small businesses, but grew rapidly to include larger clients.

Well everybody is staying home to work so why would they still need to rent for workspace outside of home? Doesn't make sense. Feel bad for SoftBank. They just don't get a break. They just keep sinking money into bad project after bad project after bad project. Very soon we are going to hear something bad about SoftBank.

 

[mervyn]

there are tons of startups that are repackaged regular companies with crazy valuations: peloton, away, warby Parker, WeWork, the razor companies, the mattress companies, the countless food companies, mommy companies, etc.

I don’t get it.

I like warby, in fact, all my eyeglasses were bought there in their shop. It is very inexpensive, $95. Other places you can easily pay well over $200. I saved more than half.

Razor business is the same, m2c, manufacturers to consumers, direct sales, no middleman. These cost cutting business models got lot of fundings, no one is more successful than PDD/Temu.

Peloton, on the other hand, asks you to spend more. It is like my mom’s old treadmill setup, exercising, watching shopping network on tv in Sundays, buying kitchen stuff.

 

[gwb-trading]

WeWork bankruptcy: One of the biggest startup failures of all time, and venture capitalists haven't learned a thing.
https://www.businessinsider.com/wew...rtup-failures-ever-vcs-havent-learned-2023-11

 

[newwurldmn]

I like warby, in fact, all my eyeglasses were bought there in their shop. It is very inexpensive, $95. Other places you can easily pay well over $200. I saved more than half.

Razor business is the same, m2c, manufacturers to consumers, direct sales, no middleman. These cost cutting business models got lot of fundings, no one is more successful than PDD/Temu.

Peloton, on the other hand, asks you to spend more. It is like my mom’s old treadmill setup, exercising, watching shopping network on tv in Sundays, buying kitchen stuff.

I think Warby was just doing things for less margin than Luxotica (or whatever it's called). That's not smarter.

All those razor brands are available at my local Walgreens now.

Peloton was trading at a multiple so high that Precor was like 1/20th their valuation: a company that made every conceivable exercise product.

 

[mervyn]

I think Warby was just doing things for less margin than Luxotica (or whatever it's called). That's not smarter.

All those razor brands are available at my local Walgreens now.

Peloton was trading at a multiple so high that Precor was like 1/20th their valuation: a company that made every conceivable exercise product.

because they are comped with high tech and e-commerce p/e, not manufacturing, and can take market shares away from the big boys.

i did make some money shorting peloton, too little to write home about.

 

[Clubber Lang]

there are tons of startups that are repackaged regular companies with crazy valuations: peloton, away, warby Parker, WeWork, the razor companies, the mattress companies, the countless food companies, mommy companies, etc.

I don’t get it.

Thank ZIRP and QE infinity from 2009-2021

 

[M.W.]

Exactly, that's the only moral of the story. Another white-collar criminal who got away. Nobody is counting by ethnicity of course, it would otherwise paint a damning picture. Did I forget to mention SBF...

Adam Neumann laughing all the way on his private jet to Israel.