WeWork, the provider of flexible office space that filed for bankruptcy protection last year, reported a $153.7 million loss in January in the United States and Canada where the court case applies.
The high-profile company that helped popularize coworking has been weighed down by lease obligations and other expenses. The loss in January came after revenue of $89.7 million failed to cover expenses, according to a recent filing with the Securities and Exchange Commission.
Besides its location operating expenses of nearly $88 million, the company paid nearly $7 million for attorney fees related to its Chapter 11 filing, among other fees and expenses. Interest expenses totaled $13.1 million, the filing said, while its general and administrative costs were $26.1 million.
WeWork also had write-down impairment costs of $32.3 million as it has sought to restructure terms with some landlords and rejected some leases. WeWork has worked to keep 13 leases among nearly 300 U.S. and Canada locations that are tied to its bankruptcy case and it has rejected nearly 90 so far.
A company spokesperson said the results don't constitute a typical financial statement and can’t be compared accurately to past global earnings. WeWork said in the filing that the report wasn’t audited or reviewed by independent accountants and might not be “indicative” of its financial condition.
In a sign of challenges facing WeWork, it said long-term lease obligations totaled $4.4 billion as of January, with current lease obligations of $163.8 million. The company, founded in 2010, filed for bankruptcy protection after it paid too much for too many office leases as it grew rapidly, leading to the scrapping of its first attempt at an IPO in 2019 and subsequent years of cost-cutting efforts and moves to renegotiate leases.
The latest result comes as a panel representing WeWork’s unsecured creditors sought bankruptcy court approval to sue WeWork’s majority shareholder SoftBank and related parties as they hope to recover hundreds of millions of dollars for landlords and its other creditors.
WeWork’s cash balance declined to $113.3 million from $134.1 million at the beginning of January, according to the filing. The company said it had a net worth, calculated by subtracting total liabilities from total assets, of about $1 billion. The company still had 1,338 employees at the end of January, down slightly from 1,393 at the start of the year.