As WeWork’s financial woes seem to endlessly pile upon each other the company is now trying to sell three companies it acquired in the last few years.
The trio of businesses are said to provide services for WeWork’s co-op suites of shared office space including cleaning, arranging meetings and marketing, according to The Information newsletter
Insiders see the company-shedding as WeWork’s practical reaction to the need to cut costs and raise cash.
The predicted sales come after weeks of turmoil for WeWork following its failure to launch as an IPO and news of mounting debts.
WeWork’s IPO plans were delayed indefinitely last month when the company could not produce financial records to justify its supposed valuation of as much as $US70b. Some valuations of the company are now as low as $US10b
Co-founder Adam Neumann has since stepped down as CEO, under pressure from the board and the poor public response to the IPO did not help.
Australian representatives of WeWork are refusing to comment on the financial upheavals affecting the parent company.
“Thank you for reaching out. We are in a quiet period and so will decline to comment,” said Tanya McCloy, the senior manager of public relations.
The company has opened 20 offices in Australia catering to start-ups, freelancers and innovative entrepreneurs – 10 in Sydney, five in Melbourne, three in Brisbane and two in Perth.
In Sydney, prices start at $2380 a month for a private office to $550 a month for a hot desk.
Staff at the hubs is estimated to be in excess of 100.