Amid reports and speculation that WeWork Global will declare bankruptcy next week, WeWork South Africa has clarified that it is not affiliated with WeWork Global and will not be affected by any bankruptcy proceedings.
The company shared its position in a recent article published by Tech Cabal. One decisive factor for the distancing and self-assurance is an important franchise partnership that WeWork South Africa had established in March with SiSebenza — a pan-African real estate investor. It’s reported that the partnership granted them exclusive rights to operate and expand WeWork’s locations in South Africa and other African countries including Kenya, Ghana, Mauritius and Nigeria.
By establishing a key franchise partnership with SiSebenza, WeWork South Africa secured a high level of autonomy and protection as speculation emerged of a looming bankruptcy for WeWork Global. The increased distancing of WeWork South Africa from the global entity that it shares a name with, also suggests a focus on hyper localization and heightened independence for a company that is positioning itself for growth in the coming years.
WeWork India holds a similar independent position, as it is backed by realty firm Embassy Group — which holds a majority 73 percent stake in the company, according to Business Standard. Interestingly, WeWork Global holds a 27 percent stake in WeWork India as it invested $100 million in WeWork India back in June 2021.