WeWork, once among the world's most valuable start-ups and most-hyped industry disruptors, has just filed for bankruptcy.
At its peak, the co-working titan was valued at about $47 billion, and was viewed as the future of workplace collaboration and a darling of the start-up community.
However, the bumpy road to its rise and eventual downfall was no secret.
The National briefly charts what happened to WeWork and what comes next.
What is WeWork and who was behind it?
WeWork began as GreenDesk in 2008 in Brooklyn, and adopted its current name in 2010.
It provides co-working spaces and, according to its website, intends to build “a global community … constantly reimagining how the workplace can help everyone, from freelancers to Fortune 500s, be more motivated, productive and happy”.
Its founders are Adam Neumann and Miguel McKelvey.
Mr Neumann, an Israel-born businessman, gained prominence for his erratic behaviour and aspirations, including his goal of becoming the world's first trillionaire and “president of the world”, and plans to live forever and expand WeWork to Mars, as reported by the New York Times.
How did WeWork go bankrupt?
A series of missteps contributed to WeWork's downfall. Industry analysts have said in the past that Mr Neumann's business model was too expensive to operate and offered little profitability.
Japan's SoftBank Group, WeWork's biggest shareholder that would eventually become its owner, also set lofty expectations for the company. SoftBank's chief executive Masayoshi Son admitted to shareholders in June that he “fell in love” with WeWork.
But it is widely believed that it was in 2019 that WeWork's downfall began, coming to a head in a failed initial public offering early that year.
WeWork was legally renamed to We Company in the several months leading up to the planned IPO. But investors baulked at Mr Neumann's behaviour, the company's grandiose business expectations and sizeable losses, as well as the general uncertainty of its direction, leading to the listing being called off.
The Covid-19 pandemic then dealt a severe blow to the office space market worldwide.
In October 2021, WeWork did manage to finally float its shares through a merger with a special purpose acquisition company, also known as blank-cheque company.
However, the company has struggled as demand for working space continues to tighten. The office space market in big cities is at risk of losing about $800 billion by 2030 as vacancies rise due to people opting for remote or flexible working arrangements, an earlier McKinsey & Co study showed.
While office attendance stabilised and recovered slightly after the Covid-19 pandemic, it remains 30 per cent below pre-pandemic levels, the global consultancy said.
The biggest sign of the impending bankruptcy came in August when WeWork's shares plummeted, falling to almost zero. Concerns about its poor financial performance and heavy debt prompted the company to admit that such a move was possible.
Rumours intensified last week and eventually culminated in the actual filing on Tuesday.
How did SoftBank become involved?
SoftBank, whose Vision Fund is the world's biggest technology-focused venture capital fund, invested $500 million in WeWork in July 2017 when it expanded into China. In August of the same year, WeWork raised $4.4 billion from the fund, valuing it at about $20 billion.
SoftBank threw a lifeline to the ailing company in October 2019 but, in return, Mr Neumann had to step down as chief executive.
The package included $5 billion in new financing and the acceleration of an already existing $1.5 billion commitment to rescue WeWork, which would have run out of cash as soon as November that year.
Mr Neumann was succeeded in 2020 by Sandeep Mathrani, who also stepped down in May 2023 and was replaced by David Tolley, who remains chief executive.
Tokyo-based SoftBank, which said it believes WeWork's move to file for bankruptcy was for the best, said on Tuesday that it would “continue to act in the best long-term interests of our investors”.
What comes next for WeWork offices and the co-working industry?
WeWork, which has listed $15 billion in assets, will continue operating as it works to raise finances.
More than 90 per cent of its lenders have agreed to a restructuring plan that will wipe out about $3 billion of debt.
The company said it would also file for bankruptcy in Canada but stressed that its operations outside North America would remain unaffected.
The National was not able to reach WeWork for comment.
WeWork's bankruptcy signals a re-evaluation of the flexible workspace sector, Oliver Baxter, founder of Dubai-based Workplace Maven, told The National.
This will open the robust and rapidly growing industry, particularly in the UAE, with many “alternative providers who can absorb the demand”, he said.
WeWork's situation can be seen as an opportunity for local entities that have established relationships with, for example, hotels, to diversify into business centres, Mr Baxter said.
“They could leverage their networks to offer flexible workspaces, capitalising on the short-term gap in the market. This strategy could appeal to businesses seeking agility and minimal capital expenditure during uncertain economic times.”
KILLING OF QASSEM SULEIMANI
THE BIO: Martin Van Almsick
Hometown: Cologne, Germany
Family: Wife Hanan Ahmed and their three children, Marrah (23), Tibijan (19), Amon (13)
Favourite dessert: Umm Ali with dark camel milk chocolate flakes
Favourite hobby: Football
Breakfast routine: a tall glass of camel milk
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
UAE%20ILT20
%3Cp%3E%3Cstrong%3EMarquee%20players%3A%3C%2Fstrong%3E%0D%3Cbr%3EMoeen%20Ali%2C%20Andre%20Russell%2C%20Dawid%20Malan%2C%20Wanindu%20Hasiranga%2C%20Sunil%20Narine%2C%20Evin%20Lewis%2C%20Colin%20Munro%2C%20Fabien%20Allen%2C%20Sam%20Billings%2C%20Tom%20Curran%2C%20Alex%20Hales%2C%20Dushmantha%20Chameera%2C%20Shimron%20Hetmyer%2C%20Akeal%20Hosein%2C%20Chris%20Jordan%2C%20Tom%20Banton%2C%20Sandeep%20Lamichhane%2C%20Chris%20Lynn%2C%20Rovman%20Powell%2C%20Bhanuka%20Rajapaksa%2C%20Mujeeb%20Ul%20Rahman%0D%3Cbr%3E%3Cstrong%3EInternational%20players%3A%3C%2Fstrong%3E%0D%3Cbr%3ELahiru%20Kumara%2C%20Seekugge%20Prassanna%2C%20Charith%20Asalanka%2C%20Colin%20Ingram%2C%20Paul%20Stirling%2C%20Kennar%20Lewis%2C%20Ali%20Khan%2C%20Brandon%20Glover%2C%20Ravi%20Rampaul%2C%20Raymon%20Reifer%2C%20Isuru%20Udana%2C%20Blessing%20Muzarabani%2C%20Niroshan%20Dickwella%2C%20Hazaratullah%20Zazai%2C%20Frederick%20Klassen%2C%20Sikandar%20Raja%2C%20George%20Munsey%2C%20Dan%20Lawrence%2C%20Dominic%20Drakes%2C%20Jamie%20Overton%2C%20Liam%20Dawson%2C%20David%20Wiese%2C%20Qais%20Ahmed%2C%20Richard%20Gleeson%2C%20James%20Vince%2C%20Noor%20Ahmed%2C%20Rahmanullah%20Gurbaz%2C%20Navin%20Ul%20Haq%2C%20Sherfane%20Rutherford%2C%20Saqib%20Mahmood%2C%20Ben%20Duckett%2C%20Benny%20Howell%2C%20Ruben%20Trumpelman%0D%3Cbr%3E%3C%2Fp%3E%0A
2019 ASIA CUP POTS
Pot 1
UAE, Iran, Australia, Japan, South Korea, Saudi Arabia
Pot 2
China, Syria, Uzbekistan, Iraq, Qatar, Thailand
Pot 3
Kyrgyzstan, Lebanon, Palestine, Oman, India, Vietnam
Pot 4
North Korea, Philippines, Bahrain, Jordan, Yemen, Turkmenistan
The specs
Engine: 2.0-litre 4cyl turbo
Power: 261hp at 5,500rpm
Torque: 405Nm at 1,750-3,500rpm
Transmission: 9-speed auto
Fuel consumption: 6.9L/100km
On sale: Now
Price: From Dh117,059
The bio
Studied up to grade 12 in Vatanappally, a village in India’s southern Thrissur district
Was a middle distance state athletics champion in school
Enjoys driving to Fujairah and Ras Al Khaimah with family
His dream is to continue working as a social worker and help people
Has seven diaries in which he has jotted down notes about his work and money he earned
Keeps the diaries in his car to remember his journey in the Emirates
Killing of Qassem Suleimani
Who has been sanctioned?
Daniella Weiss and Nachala
Described as 'the grandmother of the settler movement', she has encouraged the expansion of settlements for decades. The 79 year old leads radical settler movement Nachala, whose aim is for Israel to annex Gaza and the occupied West Bank, where it helps settlers built outposts.
Harel Libi & Libi Construction and Infrastructure
Libi has been involved in threatening and perpetuating acts of aggression and violence against Palestinians. His firm has provided logistical and financial support for the establishment of illegal outposts.
Zohar Sabah
Runs a settler outpost named Zohar’s Farm and has previously faced charges of violence against Palestinians. He was indicted by Israel’s State Attorney’s Office in September for allegedly participating in a violent attack against Palestinians and activists in the West Bank village of Muarrajat.
Coco’s Farm and Neria’s Farm
These are illegal outposts in the West Bank, which are at the vanguard of the settler movement. According to the UK, they are associated with people who have been involved in enabling, inciting, promoting or providing support for activities that amount to “serious abuse”.
Need to know
The flights: Flydubai flies from Dubai to Kilimanjaro airport via Dar es Salaam from Dh1,619 return including taxes. The trip takes 8 hours.
The trek: Make sure that whatever tour company you select to climb Kilimanjaro, that it is a reputable one. The way to climb successfully would be with experienced guides and porters, from a company committed to quality, safety and an ethical approach to the mountain and its staff. Sonia Nazareth booked a VIP package through Safari Africa. The tour works out to $4,775 (Dh17,538) per person, based on a 4-person booking scheme, for 9 nights on the mountain (including one night before and after the trek at Arusha). The price includes all meals, a head guide, an assistant guide for every 2 trekkers, porters to carry the luggage, a cook and kitchen staff, a dining and mess tent, a sleeping tent set up for 2 persons, a chemical toilet and park entrance fees. The tiny ration of heated water provided for our bath in our makeshift private bathroom stall was the greatest luxury. A standard package, also based on a 4-person booking, works out to $3,050 (Dh11,202) per person.
When to go: You can climb Kili at any time of year, but the best months to ascend are January-February and September-October. Also good are July and August, if you’re tolerant of the colder weather that winter brings.
Do not underestimate the importance of kit. Even if you’re travelling at a relatively pleasant time, be geared up for the cold and the rain.
THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
