WeWork India, the Indian arm of global co-working space firm WeWork Inc, on November 6 said it is a “profitable” and “separate entity” whose operations would not be affected by the parent group’s bankruptcy filing.
The clarification came hours after WeWork Inc filed for Chapter 11 bankruptcy in New Jersey and listed nearly $19 billion in debt.
WeWork India, in a statement, said it “operates independently of WeWork Global, and our operations will not be affected in any manner”.
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“It is a separate entity in itself, and we are not a part of this strategic reorganisation process,” the company clarified. “We will continue to hold the rights to use the brand name as part of the operating agreement, while serving our members, landlords, and partners as usual.”
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WeWork India further noted that the Chapter 11 filing “does not impact the operations of the global entity” as it continues to remain in possession of its business, operating as usual. The process restructures the debts and the leases of WeWork Global in the US and Canada, it said.
“This is a step towards improving its business’ economics, and enabling them to continue delivering best-in-class services well into the future,” the statement added.
Notably, WeWork India is backed by majority stakeholder Embassy Group. According to the company, it has been “profitable since 2021″ and sees “robust growth” in the period ahead.
Meanwhile, WeWork Global has seen a steep fall after skyrocketing to a $47 billion-valuation around five years ago. The COVID-19 jolt to the co-working space industry, along with a mismanaged initial public offering (IPO) attempt, is considered among the reasons for its fall.
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Updated: 07 Nov 2023, 03:43 PM IST