WeWork Parents We Company on Monday withdrew its plan to take the office leasing company public less than a week.
WeWork's new CEO, Artie Minson and Sebastian Gunningham said in a statement that "We have decided to postpone the IPO to focus on our core business, whose fundamentals are still strong," according to The Associated Press.
WeWork is the largest tenant in New York City, and has been given its name to lease, renovate and lease office space in cities nationwide. It was once privately valued as high as $ 47 billion. However, since the filing of regulatory documents to be published on August 1
WeWork founder Adam Neumann resigned as CEO last week. The company has cut costs when it tries to increase its balance sheet.
The Company also has an eclectic portfolio of side businesses meant to meet the well-being of members – a community-building vision promoted by Neumann, a magnetic Israeli immigrant who partially grew up on a kibbutz, and his wife Rebekah Neumann, a certified yoga instructor who studied both business and Buddhism at Cornell University.
These ventures include a training company called "Rise by We," a school for children called "WeGrow", and a cohabiting rental company "WeLive." An acquisition route included the social media network Meetup.
WeWork currently has cash. It was set at $ 2.5 billion at the end of June. But it continues to burn more money than it gives in. The annual loss amounts to. The company is on track to burn $ 2.7 billion this year.
Next year, about $ 1.5 billion will come from its largest investor, the Japanese company SoftBank. But even with that infusion, uncertainty remains as to whether WeWork can raise enough money to support aggressive growth. Last week, S&P Global Ratings reduced WeWork's credit rating to "rubbish" status.