WeWork shares have fallen by more than 40% since it warned markets that there was “substantial doubt” it could survive.
The share price in the US closed yesterday at 13 cents, 41.4% lower than the 22 cents before the announcement.
The serviced office provider shook investors’ confidence with its 10-Q statement yesterday, which raised doubts about is ability to continue as a going concern. Typically in the US such an announcement is only made if a company faces bankruptcy within the year.
However, some have argued that the statement was simply being used to give WeWork more leverage over landlords. Cutting its rent bill and lease liabilities is crucial to WeWork’s turnaround plan. It currently has more than $13bn of lease liabilities related to its 18m sq ft estate.
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