A U.S. bankruptcy judge has ruled in favor of WeWork, allowing the company to keep its customer names sealed from the public.
This decision, as reported by BisNow, comes amid WeWork’s ongoing proceedings in New Jersey bankruptcy court. The struggling coworking giant, once valued at $47 billion, is working to cut its lease obligations globally and slash annual rent payments by more than $500 million.
By allowing WeWork to keep its list of tenants private, the court is acknowledging the legitimacy of WeWork’s concerns of maintaining its business interests and customer relationships. Prior to the official court hearing on the matter, WeWork’s creditors also backed the company’s concerns over disclosing tenant information, according to a report published by CoStar.
According to BisNow, the U.S. Trustee is still able to ask the bankruptcy court to disclose the names of customers at the end of the Chapter 11 process.
The privacy of WeWork’s client base is being cited as an essential part of how the company operates. The decision suggests that in a highly competitive coworking market customer poaching should be considered as a real threat to market share and financial planning. The decision goes against what is typically expected of bankruptcy proceedings, where the court typically moves forward with disclosure of similar materials.
Notably, the assurance that client information remains confidential could become a unique selling point for companies considering a workspace provider in the future. The decision might actually encourage more companies to consider coworking spaces, knowing that their tenant information is safeguarded even in the event of bankruptcy.
