WeWork Plans to File for Bankruptcy
WeWork (ticker: WE) plans to file for bankruptcy.
The penny stock is down 53% today to $1.07. We have slammed WeWork’s business model countless times over the years in these pages, both when it was a high-flying private firm as well as when it went public (WE shares peaked at $520.80 in October 2021).
The problem with WeWork’s business model of course was that it signed long-term CRE leases, or bought buildings outright, only to lease that space short-term. A duration mismatch similar to what the regional banks were guilty of. Many of the lessees were start-ups which were not exactly flush with cash. A crappy business model combined with Venture Capital’s nuclear winter (start-ups aren’t receiving Venture checks these days), was sure to push WeWork over the edge this year or early next. WeWork’s founder Adam Neumann (no longer involved with the company), is a clown. All of the red flags were there. Just as they were with Sam Bankrun Fraud.
