WeWork gives restructuring update, hopes to emerge by end of May

By Sarah Lizee

Olympia, Wash., April 2 – WeWork Inc. announced Tuesday that it has determined a final path forward at 90% of the locations in its global real estate portfolio through amended leases, new management agreements, or via the lease rejection process.

This represents a significant milestone in WeWork’s global restructuring, the company said in a press release.

“Following a thorough evaluation of the short- and long-term economic viability of over 500 WeWork wholly owned locations, in September 2023 the company kicked off a comprehensive process of global engagement with its landlords,” WeWork said.

“Since then, the company has been working diligently to reach new lease terms more aligned with current real estate market conditions.”

The company said that as a result of the dramatic reduction in future rent expenses and further improved operating efficiency, WeWork is on track to deliver strong and sustainable financial performance following the completion of its restructuring.

WeWork said its key achievements to date include:

• Agreements in principle to amend about 150 leases, with many contracts complete and others in various stages of execution;

• About 150 locations where existing lease terms support WeWork's current go-forward business plan, to be assumed as part of the Chapter 11 process or to remain in effect internationally;

• Around 150 lease rejections or negotiated building exits completed or in progress;

• Over $8 billion, or over 40%, reduction in total future rent commitments; and

• Agreement with holders representing 92% of its secured notes to eliminate over $3 billion in prepetition secured debt obligations.

“We are well on our way to building a strong and sustainable WeWork,” David Tolley, chief executive officer, said.

“The size, scope, and complexity of our real estate restructuring is unprecedented in our industry, and we’ve made remarkable progress to date optimizing our building footprint.”

Tolley said the company remains committed to emerging from the global real estate and financial restructuring later this quarter and expects to do so with little to no debt.

WeWork is a New York-based provider of shared workspaces and related business services. The company filed bankruptcy on Nov. 6 under Chapter 11 case number 23-19865.

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