WeWork India, the Indian arm of worldwide co-working house agency WeWork Inc, on November 6 stated it’s a “worthwhile” and “separate entity” whose operations wouldn’t be affected by the guardian group’s chapter submitting.
The clarification got here hours after WeWork Inc filed for Chapter 11 chapter in New Jersey and listed practically $19 billion in debt.
WeWork India, in an announcement, stated it “operates independently of WeWork World, and our operations won’t be affected in any method”.
Additionally Learn: How WeWork founder Adam Neumann’s wealth grew whereas the corporate tumbled. Particulars
“It’s a separate entity in itself, and we’re not part of this strategic reorganisation course of,” the corporate clarified. “We’ll proceed to carry the rights to make use of the model identify as a part of the working settlement, whereas serving our members, landlords, and companions as ordinary.”
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WeWork India additional famous that the Chapter 11 submitting “doesn’t impression the operations of the worldwide entity” because it continues to stay in possession of its enterprise, working as ordinary. The method restructures the money owed and the leases of WeWork World within the US and Canada, it stated.
“This can be a step in the direction of enhancing its enterprise’ economics, and enabling them to proceed delivering best-in-class providers effectively into the longer term,” the assertion added.
Notably, WeWork India is backed by majority stakeholder Embassy Group. In response to the corporate, it has been “worthwhile since 2021″ and sees “strong development” within the interval forward.
In the meantime, WeWork World has seen a steep fall after skyrocketing to a $47 billion-valuation round 5 years in the past. The COVID-19 jolt to the co-working house business, together with a mismanaged preliminary public providing (IPO) try, is taken into account among the many causes for its fall.
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Up to date: 07 Nov 2023, 03:43 PM IST
Supply: Live Mint