WeWork India Remains Unaffected by WeWork Inc. Bankruptcy, Assures CEO Karan Virwani

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    WeWork India, a distinct entity backed primarily by the Embassy Group, has clarified that it remains untouched by the recent bankruptcy filing of its global counterpart, WeWork Inc., which is supported by SoftBank Group. Despite WeWork Inc. disclosing billions of dollars in debt and initiating a Chapter 11 filing for the restructuring of debt and leases in the US and Canada, WeWork India continues its operations independently.

    Karan Virwani, CEO of WeWork India, has emphasized the distinction between the two entities, stating, “We are a separate entity, and we are not involved in this strategic reorganization process.” He further clarified, “The Chapter 11 filing does not impact the operations of the global entity, which continues to function without disruption.”

    WeWork India reaffirms its commitment to the future of its business, with a majority stake held by the Embassy Group. Virwani assured stakeholders, saying, “During this period, we will maintain the rights to use the brand name as part of our operating agreement, while continuing to serve our members, landlords, and partners without interruption.

    The bankruptcy filing by WeWork Inc. involved the listing of nearly $19 billion in debt, coupled with ongoing challenges, including costly leases and the cancellation of agreements by corporate clients due to a shift to remote work for some employees. In the second quarter of 2023, a significant 74 percent of WeWork’s revenue was derived from space rentals.

    According to bankruptcy documents, WeWork Inc. reported estimated assets and liabilities ranging from $10 billion to $50 billion. Karan Virwani stated, “Today, WeWork Global has decided to initiate a significant strategic reorganization process in the US, along with recognition proceedings in Canada. This is a step towards enhancing the economics of its business and ensuring the continued delivery of top-tier services in the future.

    WeWork India remains unwavering in its dedication to providing flexible workspace solutions to its members within the region. Virwani concluded by emphasizing the profitability and growth of WeWork India, saying, “WeWork India has been profitable since 2021, and we are committed to the robust growth and success of the business and the industry. We have achieved consistent and sustainable growth, both operationally and financially.

    Also Read: WeWork Expands Bengaluru Operations with Over 3,600 New Desks in Prime Locations

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