Just two years after it went public, the once high-flying real estate business WeWork filed for bankruptcy without ever having figured out how to make flexible workspaces into a profitable enterprise.
“Going into bankruptcy — a Chapter 11 like this – is like open heart surgery,” said Isaac Marcushamer, a partner and bankruptcy lawyer at DGIM Law. “With the right doctors and surgeons, there’s a chance of success. But it’s not risk-free, and every aspect of the company is going to be touched.” Neumann stepped down from the top job days before WeWork had to scrap the IPO plan, and more conventional managers with traditional finance experience were brought in. The company eventually went public in 2021 through a combination with a special purpose acquisition company. But that didn’t stop WeWork from haemorrhaging cash.
But WeWork always stood out from its competitors, attracting notoriety both for the atmospheres it cultivated at its shared spaces and the intense, hard-partying corporate culture. In the halcyon days, annual summer parties featured canoes full of beer and performances by musical acts including The Weeknd and Florence & the Machine.
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