 "Karan Virwani, CEO, WEWORK")
The operations of WeWork in India will not be impacted by the potential bankruptcy filing by WeWork Inc., according to Karan Virwani, chief executive officer, WeWork India.
“WeWork India is a separate entity from WeWork Global. The recent news around the potential bankruptcy and Chapter 11 filing in the US will have no impact on the members and stakeholders in India. Any development globally has no bearing on the operations of the business. In India, we will continue to operate and serve our members, landlords, and partners as usual,” Virwani said in a statement.
He further added, “We are backed by the Embassy Group which holds the majority stake and control to run and operate the business in India. We have achieved consistent and sustainable growth, operationally and financially. WeWork India is the leader in the flexible workspace industry and has transformed the way India works. We are committed to the robust growth and success of the business and the industry.”
Co-working space provider WeWork Inc. wishes to move forward with filing a bankruptcy sometime in the next week, as reported by The Wall Street Journal. As per reports, the filing would take place in New Jersey, adhering to Chapter 11 of the Bankruptcy Code, US.
Earlier this week, the US Securities and Exchange Commission reported that WeWork had reached an agreement with creditors for postponement of payments of its debts, with the grace period almost nearing a dead-end.
As of June, the company reported long-term net debt of $2.9 billion and more than $13 billion in leases. Following the news of bankruptcy by WeWork Inc., its shares tanked 50 per cent on New York Stock Exchange.
Virwani earlier told Business Standard that it is focused on long-term sustainable growth and is looking to add another 20,000 desks year over year. Alongside, post the inauguration of the company’s latest office in New Delhi, it is targeting a revenue growth of 40-50 per cent during the financial year.
