WeWork India not affected by WeWork bankruptcy filing, says CEO Karan Virwani

WeWork India not affected by WeWork bankruptcy filing, says CEO Karan Virwani

WeWork India’s operations will not be affected in any manner after SoftBank Group-backed co-working space provider WeWork Inc. filed for bankruptcy, listing billions of dollars in debt.

“It is a separate entity in itself, and we are not a part of this strategic reorganisation process,” said Karan Virwani, CEO of WeWork India. “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 debt and leases of WeWork in the US and Canada, he said. WeWork India is backed by majority stakeholder Embassy Group and is committed to investing in the future of its business, Virwani said.

Also Read: WeWork goes bankrupt — How things went out of control for the co-working space player

“During this period, 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,” Virwani said.

WeWork filed for bankruptcy and listed almost $19 billion in debt. According to reports, profitability remained elusive as WeWork grappled with expensive leases and corporate clients cancelling because some employees worked from home.

Paying for space accounted for 74 percent of WeWork's revenue in the second quarter of 2023. The company reported estimated assets and liabilities ranging from $10 billion to $50 billion, according to a bankruptcy filing, the reports said.

“Today, WeWork Global has made the decision to initiate an important strategic reorganisation process in the US, along with recognition proceedings in Canada. This is a step towards improving its business’ economics, and enabling them to continue delivering best-in-class services well into the future,” Virwani said in a statement.

He said WeWork India remains fully focused on delivering flexible workspace solutions for members in the region.

“WeWork India has been profitable since 2021, and we are committed to the robust growth and success of the business and the industry,” Virwani said. “We have achieved consistent and sustainable growth, operationally and financially.”