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It can, but it needs to be able to renegotiate their leases and break out of the bad leases. The problem with WeWork is that Adam Neumann closed really bad lea
by thiago_fm 3y ago
It can, but it needs to be able to renegotiate their leases and break out of the bad leases.
The problem with WeWork is that Adam Neumann closed really bad leases (which are typically like decade long) which makes certain locations not profitable at all, no matter how WeWork provides a good service.
Once you remove the rotten stuff, they've got actually pretty good business, 75%+ occupancy rate and people who use WeWork actually like it.
It's also a memorable brand and that business model they have is actually good. But you need to "reshape" completely the company, and only through bankruptcy laws you could achieve it.
- flutas 3y agoI do wonder (and truly mean wonder, because I have no clue), what percentage of the 75%+ occupancy is attributed to the bad leases. Are their most used buildings "bad leases" and their good leases are sitting empty? i.e. are the most sought after / used locations are also the most costly to WeWork.
- yowzadave 3y agoI'm sitting in a WeWork in Manhattan right now, which I would guess is one of the "bad" (meaning, WeWork overpaid) leases. It has fairly low occupancy--definitely less than 50%.
- AlexandrB 3y ago> It's also a memorable brand In the same sense as Juicero.