As WeWork approaches its May 31 target to exit Chapter 11 bankruptcy in North America, it’s also significantly reducing its London footprint as part of its ongoing global restructuring efforts.
According to a report published by BisNow, the company has shed 750,000 square feet of office space in the U.K. capital — closing or planning to close 19 locations since September 2023.
Stemming from updated CoStar data in addition to WeWork’s official website, BisNow reports that a third of WeWork’s London’s spaces have closed, with the company’s total presence down to an estimated 2.5 million square feet.
The list of closed locations may one day include the 280,000-square-foot space at 30 Churchill Place in Canary Wharf. According to a report published by GB News, a document that had circulated to the European budget committee said the U.K. branch of WeWork would soon stop paying rent on the building. However, WeWork still offers flexible spaces at the property on its website.
WeWork, which suffered a considerable downfall from its peak valuation of $47 billion, filed for chapter 11 bankruptcy in November 2023 after its long-term lease liabilities mounted amidst dwindling office space demand. The company claims it has renegotiated around 150 leases to reflect current market conditions and maintains that it is in the process of exiting an additional 150 leases.
According to a report published by Reuters, a key factor to WeWork’s post-bankruptcy strategy has been its substantial reduction in future rent costs. The restructuring effort received a boost in November when WeWork secured an agreement with over 90% of its bondholders to convert $3 billion of debt into equity, ensuring the continued support of SoftBank — which owns approximately 70% of the company.
If WeWork successfully emerges from bankruptcy, it’s reported that its creditors will assume control through a debt-for-equity swap — with investment firm SoftBank set to become the largest owner, estimated to own around 70% of the company.
