Property 06/07/2024 0 Comments

WeWork India not affected by WeWork bankruptcy filing, says CEO Karan Virwani


WeWork India not affected by WeWork bankruptcy filing, says CEO Karan Virwani

WeWork India is backed by majority stakeholder Embassy Group and is committed to investing in the future of the business

SoftBank Group-backed co-working space operator WeWork Inc. filed for bankruptcy, citing billions of dollars in debt, although this will not have any impact on WeWork India’s operations.

WeWork India CEO Karan Virwani stated, “It is a separate entity in itself, and we are not a part of this strategic reorganization process.” “The global entity continues to remain in possession of its business and operate as usual, so the Chapter 11 filing has no impact on its operations.”

According to him, the procedure restructures WeWork’s debt and leases in the US and Canada.

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As stipulated in the operating agreement, we will maintain the ability to use the brand name during this time, Virwani added., “while providing our members, landlords, and partners with our regular services.”

WeWork disclosed over $19 billion in debt when declaring bankruptcy. Reportedly, struggled with costly leases and corporate clients quitting because some workers worked from home, and profitability remained elusive.

In the second quarter of 2023, 74% of WeWork’s revenue came from paying for space. According to a bankruptcy filing, the corporation disclosed estimated assets and liabilities between $10 billion and $50 billion, the reports stated.

WeWork Global has decided to start a significant strategic reorganization process in the US today, in addition to initiating recognition procedures in Canada. In a statement, Virwani said, “This is a step towards improving its business’s economics and enabling. them to continue delivering best-in-class services well into the future.”

WeWork India has turned a profit since 2021, and Virwani reaffirmed. the company’s dedication to the industry’s and the business’s continued prosperity. “Our operations and finances have grown in a steady and sustainable manner.”