WeWork, once valued at $40 billion, warns of possible bankruptcy as it submits ‘going concern’ notice
WeWork, a beleaguered officing co-working company, has warned that it could run out of money and be forced to file for bankruptcy protection in the near future. In an SEC filing on November 17, 2020, the company admitted that it had been running out of cash and had to seek additional financing. It described its position as a “Going Concern” — a term used to describe a company that must raise substantial new equity or debt capital in order to survive or is in such a precarious financial position that failure is a distinct possibility. The company had a peak valuation of $40 billion after its last fundraising round in June 2019.