WeWork is reportedly looking hard for money. The company, which previously put plans for an IPO in the fridge, appears to be struggling with financial deficits faster than expected. This week, a new debt financing scheme must provide the lessor of shared workspaces, which is also active in the Netherlands, with some air. The writes the British newspaper business newspaper Financial Times based on insiders.
Earlier credit rating agency Fitch warned that the cash position of the loss-making company was precarious. The company posted revenues of $ 1.8 billion last year, compared to a $ 1.9 billion deficit. Shortly after canceling the IPO, the management of the company already announced the necessary interventions, including job cuts.
The American bank JPMorgan Chase would guide the search for new credit. The bank was involved in the preparations for the canceled IPO of the company and would also consider a significant share in a new financing round.
The IPO was expected to have provided WeWork with 3 billion to 4 billion dollars. In addition, it would have converted $ 6 billion in loans into shares. The cancellation of the plans did not do the WeWork appreciation any good.