Fresh out of resolving some of the concerns about its bankruptcy financing agreement, WeWork has hit another stark threat as it navigates the complexities of bankruptcy court.
The struggling coworking giant will most likely be required to publicly disclose thousands of tenant’s names, an act which it fears will give competitors the ability to use the list to take WeWork customers.
WeWork’s lawyers are now attempting to shield the privacy of the company’s extensive tenant base, with an official hearing on the matter scheduled for Wednesday. According to a report published by The Real Deal, WeWork is seeking to keep the names of its over 600,000 customers worldwide confidential during its bankruptcy proceedings.
The move, while understandable from a business perspective, clashes with the traditional norms of bankruptcy law — which typically moves in favor of public disclosure. It’s reported by The Real Deal that The Department of Justice opposes WeWork’s privacy request.
WeWork’s concerns reveal just how competitive the coworking industry has become. It also seems to suggest that customer loyalty can be just as volatile as the market itself. WeWork’s stance on publicly disclosing the names of thousands of tenants to bankruptcy court reveals just how complex bankruptcy proceedings are — and that succeeding with the financial arrangements means nothing if it doesn’t keep tenants moving forward.
From WeWork’s perspective, the outcome could substantially impact its future business operations. The company is suggesting that keeping tenant information private could help retain its current customer base and its market position.
