WeWork sold flexibility to its customers while signing commitments that were much harder to escape. Its November 6, 2023 filing confirmed Chapter 11 proceedings for the company and certain subsidiaries.
The mismatch was always in the model. A member could leave when the office stopped being useful. WeWork still owed rent under a lease negotiated for a much longer period. Empty desks reduced income faster than they reduced obligations.
The company said it would restructure debt and rationalize its lease portfolio. Its quarterly filing describes that work. Chapter 11 offered a process for changing commitments; it did not establish that demand for shared offices had disappeared.
I can see the value of a workspace someone can book without a long lease. The provider has to price that flexibility well enough to carry the empty days. Calling the booking interface technology never changed the landlord’s due date.