WeWork, once valued at $40 billion, warns of possible bankruptcy as it submits ‘going concern’ notice

WeWork has warned its investors that it may have to file for bankruptcy due to uncertainties surrounding its business. On Monday, the company said in a regulatory filing that it had submitted a “going concern” notice, which acknowledges that it may not be able to continue operating if it fails to raise new funding or engage in other steps to improve its financial condition. This comes at a difficult time for the company, which had been valued at $40 billion at the peak of its growth. In the filing, WeWork said that it had burned nearly $2.9 billion cash in the first nine months of 2019. In October, the company was bailed out by Softbank in a deal to inject $9.5 billion in exchange for majority control. WeWork also announced in the filing that its co-founder and former CEO Adam Neumann had agreed to an additional $500 million of his near-20% stockholding being converted into debt that can be repaid earlier at a discount.