In The Loop: WeWork Faces New Lawsuit while IWG Takes over Office Space WeWork Vacated

WeWork’s woes continues, the latest on their saga is a lawsuit from investors.

Investors Sue WeWork over Failed IPO

It seems that WeWork’s woes continue to mount. It was reported this week that “a group of investors filed a class-action lawsuit against WeWork claiming the coworking giant duped them in the run-up to its botched initial public offering last year.” The suit was filed by investors who bought shared in the company between 2017 and September 2019. In the suit, WeWork is accused of fraud and for growing its business for the main purpose of inducing additional investment in the company. 

IWG Takes over Office Space WeWork Vacated

The Financial Times reported this week that International Workplace Group (IWG) “has made its first move to capitalise on the retrenchment of WeWork, taking over a Hong Kong office vacated by  its rival.” According to the report, IWG secured the lease on  30,000 square feet of office space in the Causeway Bay district. IWG used funds from a war chest via a share placing to secure the lease in Hong Kong. According to sources, the fund was intended to be used for the company’s expansion. 

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The Riveter to Close All of Its Coworking Locations

Women-focused coworking space operator, The Riveter, announced earlier this week that it will shut down all 9 of its locations. In the announcement, CEO Amy Nelson states that the company will be shifting focus towards strengthening its online community. The good news is that the closure of The Riveter doesn’t really mean much for other coworking space operators. 

To read more flexible workspace news, visit our Daily Digest section.

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