WeWork, shortly after warning about its future, seeks to renegotiate nearly all of its leases

[Eugene]

Source: Associated Press

WeWork, shortly after warning about its future, seeks to renegotiate nearly all of its leases

BY WYATTE GRANTHAM-PHILIPS
Updated 3:38 PM EDT, September 6, 2023

NEW YORK (AP) — WeWork said Wednesday it will attempt to renegotiate nearly all of its leases and may exit some properties, an announcement coming just weeks after the workspace-sharing company sounded the alarm over its ability to remain in business.

The New York company must reduce its operating costs — notably its current lease liabilities, which “remain too high and are dramatically out of step with current market conditions,” WeWork Interim CEO David Tolley said in a statement published on the company’s website.

WeWork’s lease liabilities accounted for more than two-thirds of its operating expenses for the second quarter of this year, Tolley said. As of June 30, WeWork had 777 locations in 39 countries.

“We will seek to negotiate terms with our landlords that allow WeWork to maintain our unmatched quality of service and global network, in a financially sustainable manner,” Tolley wrote — adding that the company expects to exit “unfit and underperforming locations” as part of these negotiations.

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Read more: https://apnews.com/article/wework-renegotiate-leases-cut-operating-costs-8d8bdb601dd197b59fd2edcb1924500d