Does WeWork's Going Concern Warning Signal A Potential Bankruptcy Filing?

Three years have passed since the COVID-19 pandemic reached the United States and its effects are still being felt today. Even though lockdown measures have largely disappeared and many workers have returned to the office, flexible work has become a fixture in the workplace. The shift to remote and more flexible work arrangements have impacted many segments of the economy, perhaps most directly, commercial real estate companies. The rise of remote work has reduced demand for office space, with some cities reporting office vacancy rates as high as 30 percent.¹ And with less appetite for in-person work, companies have reduced the size of their office footprint.²

WeWork, a company that provides office space to individuals through a monthly subscription, as well as to companies through enterprise office space agreements, has been significantly impacted by this trend. At the end of 2022, WeWork had more than 18 million square feet of rentable office space in the United