WeWork Reports Sales Recovery Since 2019's Failed IPO Lows: Bloomberg

  • SoftBank Group Corp SFTBY SFTBF-backed global co-working company, WeWork’s, April and May desk sales marked its best net desk sales since September 2019, Bloomberg reports.
  • The company had previously informed regarding the resurgence of demand.
  • WeWork cut expenses considerably, terminated employees, including the CEO, after shelving its initial public offering (IPO) due to loss of investor confidence.
  • New CEO Sandeep Mathrani noted multiple order cancellations due to the pandemic.
  • The company is eyeing a $9 billion special-purpose acquisition company (SPAC) merger with BowX Acquisition Corp BOWX to go public.
  • WeWork’s occupancy rate dropped to 47% in late 2020 from the plus 70% highs. The occupancy rose to 53% at May end.
  • For the first time since September 2019, almost every regional market sold more new desks than they lost through cancellations or other departures.
  • WeWork’s memberships plummeted from 662,000 in Dec. 2019 to 490,000 in 2020 due to the pandemic. Interestingly, WeWork had 505,000 memberships in May end, inching closer towards the failed IPO highs.
  • Many memberships include passes that enable booking on-demand or access to multiple office locations under one membership.
  • WeWork left 17 buildings and renegotiated the leases for 51 more to further cut expenses.
  • WeWork collaborated with SoftBank Latin America Fund to supervise Argentina, Brazil, Chile, Colombia, and Mexico’s building operations. It has similar franchise agreements in India and Israel.
  • Price action: BOWX shares are up 2.20% at $11.60 on the last check Monday.
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