Wework losses ballooned to $1.3bn in quarter before failed float
Wework losses reportedly more than doubled to $1.3bn (£1bn) in the third quarter ahead of its expected initial public offering (IPO).
The figures contained in a presentation for Wework creditors today showed why the company was thrown into crisis when its expected $9bn IPO and connected debt financing deal collapsed in September.
The debacle led to the exit of its founder and chief executive Adam Neumann and a rescue package from major backer Softbank.
Read more: Wework in talks with T-Mobile boss over chief executive role
Wework opened nearly 100 new offices in the three months ended September taking its total to 625, the reports said.
During the quarter Wework’s net revenue jumped 94 per cent from the previous year to $934m.
The company said it added 115,000 desks in the quarter, taking it to a total of 719,000.
Read more: Wework hits the brakes on London expansion after Softbank rescue deal
Its overall occupancy rate fell to 79 per cent from 82 per cent at the end of the quarter.
Last month Japan’s Softbank took control of the company, providing $1.5bn to help its financial situation, arranging a $5bn debt financing and agreeing to buy $3bn in shares from the company’s investors.
Softbank has appointed its chief operating officer Marcelo Claure as Wework’s executive chairman and is searching for a new chief executive to lead the group, with T-Mobile US boss John Legere among the potential candidates.
Wework was contacted for comment.