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WeWork Emerges From Bankruptcy And Names New CEO

By Nithya Bose in US business news, posted June 12, 2024

WeWork has emerged from bankruptcy and appointed John Santora, a Cushman & Wakefield executive, as its new CEO.

This move marks the company's fourth permanent CEO in five years.

Once valued at $47 billion, the firm filed for Chapter 11 bankruptcy protection in November, citing liabilities of $18.65 billion against assets of $15.06 billion.

The financial turmoil was exacerbated by the Covid-19 pandemic, which caused a surge in vacancies, an economic downturn, and a steep decline in tech valuations.

Santora replaces David Tolley, who served as interim CEO starting in May 2023 before taking on the permanent role in October.

The announcement follows WeWork’s delayed exit from bankruptcy, originally targeted for May 31.

Alongside the CEO appointment, WeWork also introduced a new board featuring Anant Yardi, CEO of Yardi Systems.

During Tolley’s tenure, WeWork renegotiated over 190 leases and exited more than 170 unprofitable locations, significantly reducing its annual rent and tenancy expenses by over $800 million.

The company also secured an additional $400 million in equity capital.

WeWork was once valued at $47 billion

WeWork's portfolio now consists of about 45 million square feet across 600 locations in 37 countries.

Santora, who leaves Cushman & Wakefield after a 40-year tenure, will lead WeWork into its next chapter.

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His extensive experience in commercial real estate is expected to be crucial in stabilizing and growing WeWork’s operations post-bankruptcy.

Founded in 2010 by Adam Neumann and Miguel McKelvey, WeWork experienced rapid growth and massive financing rounds under Neumann’s leadership.

However, Neumann was ousted in 2019 following a failed IPO attempt.

The company eventually went public in 2021 through a special purpose acquisition company (SPAC), only to see its equity holders wiped out two years later.

WeWork’s restructuring and strategic leadership changes aim to stabilize the company and restore its position in the co-working space industry.

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