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WeWork to run out of cash by November of this year

WeWork which is a co-workingworkspace firm is expected to run out cash by the month of November and its investors have been trying to save the company from bankruptcy.

The SoftBank group corporation from Japan as well as JP Morgan chase have been working in an attempt to save the co-working giant by securing emergency funding.

The company is expected to let go off a minimum of 2000 employees due to its IPO which had failed to take off.

To make matters worse, their CEO Adam Neumann had been then relieved of his duties which made the company credibility even worse.

The Japan based SoftBank owns a stake of 29% in the parent firm of WeWork which is The We Company and has an investment of $10.7 billion in its business.

There are reports that WeWork will be making up for the failed IPO by taking up a risky financial package which is going to be led by JPMorgan instead of selling the control stake to SoftBank.

The IPO of the start-up had been postponed in the month of September and the former CEO and co-founder Adam Neumann gave up most of his voting control after the shareholders and SoftBank had turned on him.

The lack of investor confidence was highlighted by the fact that the trading in shares of the company in the over the counter private market had almost come to a halt.

The company’s valuation has ranged from close to $7 billion on the basis of the 338.4 million shares it had issued which was down from its valuation in the month of January when the valuation was $47 billion at the time SoftBank had last invested.

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