SoftBank is bailing out WeWork again, this time rescuing the struggling WeWork Japan affiliate. It was announced on Friday that SoftBank, a major WeWork shareholder, will fully acquire the Japanese branch in a bid to turn the business around.
The news arrives just four months after WeWork’s U.S. arm filed for chapter 11 bankruptcy in New Jersey — which has put the global brand’s future in question.
According to a report published by nippon, WeWork Japan is set to undergo civil rehabilitation procedures approved by Tokyo District Court. The Japan Times reports the takeover will be through a newly established subsidiary where SoftBank will merge WeWork Japan, providing financial support. The takeover is expected to be finalized in April.
The takeover comes at a time when the U.S.-based WeWork is grappling with outstanding rent and financial restructuring. The struggling coworking giant has been moving to reject major leases and renegotiate many others. WeWork is reported to have slashed an estimated $3.7 billion in future lease expenses so far. However, court filings revealed that the business has incurred at least $33 million in unpaid rent, which was due January 1.
Established in 2017, WeWork Japan opened its first space in Tokyo in February 2018 and now has about 40 locations across the country. In statement made to Japanese media outlets, the WeWork branch assured continued and uninterrupted services for its members throughout its restructuring process.
