Well, well, well. It turns out that flushing millions of dollars down the toilet year over year is not a very sustainable path to success!
Citing two sources known about the case, the Financial Times reported . Thursday the once unicorn and current imploding disaster WeWork could run out of cash as soon as the end of next month, and is currently rushing to scrape together a debt financing package. According to the report, JPMorgan Chase – who was involved in the company's bombed initial public offering – is considering both throwing in the package as well as trying to persuade other financial institutions to support emergency funding.
Bloomberg meanwhile, reported Friday that the debt package ̵[ads1]1; which both sites report could come as soon as next week – is a place in the $ 5 billion ballpark to bail the company. Bloomberg also cited sources who said the company must secure funding to avoid running out of money by the end of November. Both WeWork and JPMorgan Chase declined to comment on the debt package reports.
As both Bloomberg and the Financial Times noted, WeWork owner We Company had banked on to secure a $ 6 billion loan that depended on an IPO for success, but that plan obviously showed spectacular returns. The company filed to withdraw its public offer late last month following a violent chaos involving the company's backed co-founder and CEO Adam Neumann and WeWork's financial position.
Neumann resigned from from the role of CEO last month just a week after the publication of an absolute banana Wall Street Journal profile detailing his allegedly excessive and waste of mismanagement of the company's funds and resources to pursue its goal, according to a source who spoke with the paper, to be " the world's president." Artie Minson and Sebastian Gunningham were named co – CEOs to manage the company after Neumann's departure.
In addition to the debt package allegedly in the works, WeWork also apparently hopes to trim some of the fat. As the first HuffPost reported Friday, the company is closing its Manhattan public school, WeGrow, after the current school year.
"As part of the company's efforts to focus on core business, WeWork has informed the families of WeGrow students that we will not operate WeGrow after this school year," a WeWork spokesman told Gizmodo in a statement via e-mail. mail. "WeWork and the families of WeGrow students are in discussions with interested parties about plans for WeGrow for the following school year."
Rebekah Neumann, Adam Neumann's wife and head of the WeGrow Initiative, told Fast Company in 2017 that she conjured up the idea for the Montessori operation after not finding a school for their daughter who would "give nourishment for growth, her spirit and her mind. "
"These kids come to the world, they are very developed, they are very special," Neumann told Fast Company at the time. "They are spiritual. They are all natural entrepreneurs, natural humanitarians, and then it seems like we are splashing it all out in the education system. Then we ask them to be disruptive and find it again after college. "
No one wants to think about these brilliant, disturbing kids.