WeWork bailout may be coming soon
A rescue for struggling office-sharing company WeWork may be in the works.
Giant investment bank JPMorgan Chase is reportedly in talks to potentially be the key player in a bailout of WeWork -- which specializes in supplying shared office space for tech start-ups. The company is in dire financial straits at the moment and reportedly needs funding urgently from an entity by no later than the beginning of December or it will be out of both time and money, according to The Financial Times.
The once-surging WeWork withdrew plans for an IPO at the end of September, after it became clear to potential investors, upon further review, that the company had serious issues with losses, debt and alleged corporate mismanagement. The result of these revelations about WeWork ended up leading to the company's CEO and co-founder Adam Neumann, who was suddenly under fire as a result of the greater analytical and media scrutiny, stepping down.
But, there is cautious optimism, at least among some experts, that WeWork will be able to make it out of its current travails in one piece.
“The WeWork failure is about the governance model, not about a business model,” Greg Kraut of K Property Group told FOX Business' Charlie Gasparino in a recent story about the company. “The core business model works … they’ll get through this.”
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