Wework UK owes almost £840m to bankruptcy-hit US owner

The UK arm of troubled US co-working startup Wework lost almost £150m in the year before its parent company filed for bankruptcy.

The division suffered a pre-tax loss of £147.9m in 2023, according to newly-filed accounts with Companies House.

The latest figure comes after the arm racked up a pre-tax loss of £122.6m in 2022.

Wework’s UK business also lost £142.7m in 2021, £246.7m in 2020 and £233.7m in 2019.

The accounts have also revealed that Wework’s revenue increased from £59.3m to £72.5m in 2023 while the amount it owes to its parent company rose from £730.9m to £836m.

The results come after Wework’s New York-based parent company filed for bankruptcy towards the end of 2023 after being hit by a drop in demand for office space sparked by the pandemic. The group emerged from the process in June 2024.

In the intervening months, the business has  used court protection to renegotiate the terms of its rental leases and work with its lenders.

In May 2024, Wework said it planned to operate 337 shared office spaces across the world following the bankruptcy. The total is half the number it had in June 2023.

As a separate entity, Wework International was not part of its parent company’s bankruptcy procedure.

However, in 2024 Wework closed its site in Manchester as well as four in London.

On the process, Wework International said: “In September 2023, we kicked off a comprehensive process of global engagement with our landlords to negotiate terms that allow us to maintain our unmatched quality of service and global network, in a financially sustainable manner.

“Since then, we have been working diligently to reach new lease terms that are more aligned with current real estate market conditions.

“During 2024, we announced that we have determined a final path forward at 90 per cent of our locations globally through amended leases, new management agreements or via the lease rejection process.”

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