New Delhi, November 07, 2023 – WeWork India’s CEO, Karan Virwani, has assured that WeWork India’s operations will not be impacted by the recent bankruptcy filing of WeWork Inc., a co-working space provider backed by SoftBank Group and dealing with billions of dollars in debt.
Virwani emphasized that WeWork India operates independently from WeWork Inc.’s strategic reorganization process, stating, “It is a separate entity in itself, and we are not a part of this strategic reorganization process.” He further clarified that WeWork India will remain unaffected, continuing its operations without any disruptions.
The Chapter 11 bankruptcy filing pertains to WeWork’s debt and leases in the United States and Canada, but WeWork India, backed primarily by Embassy Group, remains dedicated to investing in the growth of its business. Virwani emphasized that during this period, WeWork India will retain the rights to use the brand name as part of the operating agreement, ensuring continued service to its members, landlords, and partners.
WeWork recently filed for bankruptcy, listing almost $19 billion in debt. Reports suggest that WeWork faced challenges in achieving profitability due to costly leases and corporate clients canceling agreements as more employees embraced remote work. Paying for office space constituted a significant portion of WeWork’s revenue in the second quarter of 2023.
“WeWork Global has initiated an essential strategic reorganization process in the US, along with recognition proceedings in Canada. This step is aimed at enhancing the company’s economic outlook and ensuring the delivery of exceptional services in the future,” Virwani explained in a statement.
Virwani affirmed that WeWork India remains fully committed to providing flexible workspace solutions to its members in the region. He highlighted WeWork India’s profitability since 2021 and expressed unwavering dedication to the business’s continued growth and success.
“We have consistently achieved sustainable growth, both operationally and financially,” Virwani concluded, emphasizing WeWork India’s strong position and commitment to its members and partners.
