WeWork, WeBroke, WeOver.

Hollywood would have you believe the best things come in threes. That’s why it’s obsessed with making everything and anything a trilogy.

In some ways, it’s the perfect way to tell the story of WeWork.

• Act 1 is the departure, where the hero, Adam Neumann, receives a call to adventure – to elevate the world’s consciousness (lol) leaves their home and embarks on a quest.

• In Act 2, the hero enters a new world where they face challenges and learn new things until they conquer their adversary and gain the object of their quest. In this case, Neumann taking WeWork to a valuation of $47 billion.

• And in Act 3, the hero returns home bringing something that will help the community, thanks to the experiences they had and the wisdom they gained. Unfortunately, WeWork went off-script here.

Well, consider this my WeWork trilogy. In WeWorked, Until It Didn’t, I looked at how Adam Neumann instead destroyed his company, became filthy rich, and went out on the comeback tour, sucking up yet more VC dollars.

In WeBroke, I wrote about the struggles the company has faced in its failed attempts to rehabilitate. And now, in the third act, we’re forgoing the Hollywood happy ending.

WeBankrupt

In a filing sent last Tuesday, WeWork sent a distress signal about the viability of its future existence. The company announced it had “substantial doubt” it would stay in business, adding it aimed to reduce its lease costs and other expenses, increase revenue and obtain “additional capital via issuance of debt or equity securities or asset sales.”

Part of the statement reads:

“As a result of the Company’s losses and projected cash needs, combined with increased member churn and current liquidity levels, substantial doubt exists about the Company’s ability to continue as a going concern.”

It’s no surprise. Late last year, Fitch Ratings had already downgraded the company’s long-term bonds to CCC, effectively a junk rating. On the back of this, the company was given six months to get in shape or risk being delisted from the NYSE. Since then, the stock price has dropped to $0.20 a share, down a staggering 96% for…

SOURCE: https://entrepreneurshandbook.co/wework-webroke-weover-4e9b460807e5?source=rss—-7adf33e44ae3—4 https://entrepreneurshandbook.co?source=rss—-7adf33e44ae3—4