WeWork has given tenants of one of its primary U.K. branches 30 days to vacate. The evictions impact all members as the collapsing coworking operator closes its 133 Houndsditch location in the City of London.
According to The Daily Mail, the company’s official statement reads, “As part of WeWork’s efforts to achieve a sustainable capital structure and profitable business to serve our members for the long term, we made the decision to stop operating our location at 133 Houndsditch.”
WeWork has committed to assisting affected customers in relocating to its other nearby locations.
This news comes as the firm grapples with a looming debt crisis and increasing skepticism about its viability to continue financially. WeWork has put itself on a path to default, withholding interest payments amounting to approximately $95 million, which has added to intensifying concerns that WeWork might be on the brink of bankruptcy. The company has also started to reduce its office space in the U.S. and is actively seeking to renegotiate all its leases globally — so that it can address other major pitfalls.
From a valuation of a staggering £39 billion at its peak in 2019, WeWork’s value has since plummeted to a mere £102 million, causing the company to vote for a reverse stock split to maintain a listing on the New York Stock Exchange (NYSE).