WeWork said its operations in Singapore are business as usual and unaffected by its Chapter 11 bankruptcy in the United States.

According to The Straits Times, a spokesperson for the U.S.-listed co-working startup said on Nov. 7 that its business here is not part of the bankruptcy proceedings and it will continue leasing its spaces and taking on new members.

"Whatever that has been agreed and signed remains the same," WeWork's spokesperson said.

The spokesperson also reportedly stressed that there are no plans to reduce headcount in Singapore or cut the pay of its employees here.

A WeWork spokesperson separately told Today the company was still hiring.

Trading of WeWork shares was halted on Monday in the wake of reports the company was filing for bankruptcy.

Rents from landlords, leases to tenants

WeWork was once valued at S$64.4 billion.

The co-working space provider rents from landlords and then leases these spaces out as office spaces to individual members or companies.

In Singapore, WeWork leases 14 locations, mostly in the Central Business District.

WeWork's largest space in Singapore, its 14th outlet, is a 21-storey building at 21 Collyer Quay near Raffles Place, with 213,000 sq ft of space.

It was opened only in September 2022, taking over the entire former HSBC headquarters.

It also leases space at Funan, City House, Suntec Tower 5 and Mapletree Anson.

The spokesperson also told ST that the company is renegotiating its leases across all its locations worldwide.

Background

WeWork recorded overall losses of US$397 million (S$523 million) in the second quarter of 2023.

However, WeWork said on Nov. 6 that the company’s locations outside of the U.S. and Canada, as well as its franchisees around the world, are not affected.

This was after it said on the same day it has entered into a restructuring agreement to drastically reduce its existing funded debt.

It also intended to file bankruptcy recognition proceedings in Canada.

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