WeWork burnt through $1.4 billion in the final three months of 2019, almost all the cash injection its principal backer SoftBank provided, FT reported. The company revealed that it ended the year with $4.4 billion of cash and commitments.
- Assumptions: The $4.4 billion figure included $1.3 billion of cash WeWork had on its balance sheet, as well as $800 million of restricted capital. It said it also had $2.2 billion of cash it could draw down from a debt financing agreed with SoftBank in December, and $100 million it was still owed for one of its joint ventures.
- Worth Noting: In November, WeWork disclosed that it had lost $2.2 billion during the first nine months of 2019. The cash burn figure that was disclosed underscored the strain on the company’s finances in the run-up to 2020, even before the outbreak of the coronavirus pandemic. The company’s bonds continue to trade at distressed levels.
- Losing tenants fast: The internal message board for the company’s subtenants is ridden with complaints about offices remaining open and customers continuing to be charged, despite more than half a dozen coronavirus outbreaks reported last week at WeWork’s Manhattan workspaces, NYPost reported.