WeWork doesn't work

[trade247]

What a fall from grace WeWork has had in the main stream media since it's IPO hype and ultimately failed attempt to list.

"Last week rating agency Fitch downgraded WeWork’s credit rating to CCC+, a level at which “default is a real possibility”. It said “the risk that the company is unable to restructure itself successfully has increased materially”." as reported from the FT. https://www.ft.com/content/71b995e4-e5f7-11e9-9743-db5a370481bc

 

however as one FT comment read

"Interesting article that shows what the actual landlords are saying about WeWork as a tenant vs all the negative headlines. Most of the WeWorks I have been to in LatAm, Miami and New York have months long waiting lists for offices. They broke even on a cash flow basis sometime in 2017 before accelarating growth again post Softbank. Also, as the article points out, Blackstone and IWG are doubling efforts to compete with WeWork for a reason. Hard to argue that Blackstone is not aware of what a profitable RE business is. Irresponsible behavior from Neuman like buying a wavepool and G650 and terrible past corporate governance aside, WeWork's underlying business seems to have merit to it."

Edited October 8, 2019 by cryptotrader

[Mercury]

Well it s a terrible business model so no surprise really.  Maybe finally reality is catching up with the hype.  Lst time that happened we had the dot.com bubble bursting...