WeWork execs are trying to reassure staff it still has access to billions of dollars in debt: Bloomberg
- WeWork says it has access to billions of dollars in debt as it seeks to reaffirm its financial health.
- In a Wednesday email to staff obtained by Bloomberg, key executives at the coworking firm said WeWork retains the support of major backer SoftBank, as well as access to the debt.
- That's after suggestions SoftBank could delay or abandon an agreement to buy $3 billion of company stock held by investors and staff.
- WeWork has struggled in the wake of its botched IPO last September, with numerous executive reshufflings and ongoing concern about the viability of its business model.
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Senior WeWork execs have reportedly rushed to reassure staff the firm still has the backing of its main investor, SoftBank, after reports the company could reduce its support.
In a Wednesday email to staff obtained by Bloomberg, executives at the coworking firm said WeWork retains the support of major backer SoftBank, as well as access to vast debt sums.
The previous day, the Wall Street Journal reported SoftBank could delay - or even abandon - an agreement to purchase $3 billion of company stock held by investors and staff, as part of a wider agreement to effectively bail out the troubled firm.
Earlier this week, SoftBank reportedly notified shareholders that ongoing regulatory inquiries into WeWork could be justification to back out that part of the deal.
But Wednesday's email to staff, reportedly signed by recently-appointed CEO Sandeep Mathrani and executive chairman Marcelo Claure, sought to reassure staff of the Japanese conglomerate's long-term financial commitment to WeWork.
"There should be no doubt in SoftBank's support of WeWork and the strategic five-year financial plan that we all continue to execute on together," the executives wrote, according to Bloomberg.
WeWork has struggled in the wake of its botched IPO last year, undergoing numerous executive reshuffles as a result. The firm is in the midst of a turnaround, having ousted ex-CEO Adam Neumann and replaced him with Mathrani in February and fired thousands of staff.
Those wobbles continue as the coronavirus outbreak signals both dented demand for coworking spaces as workers stay home, and a possible global recession.
