WeWork Gives Members Global Access During Pandemic Disruption

Written by
Gillian Tan
Written by

Gillian Tan

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(Bloomberg) -- WeWork, the co-working company backed by SoftBank Group Corp., is giving members access to its more than 800 global locations for no additional charge amid the disruptions caused by the Covid-19 pandemic.

“We know you've had to make a number of unexpected decisions over the last few months,” the company wrote in an email to customers seen by Bloomberg News. “Whether you need access to a clean, productive workspace closer to home or to change up your routine, our doors are open for you wherever you are.”

A WeWork spokeswoman confirmed the contents of the memo and declined to comment further.

The company, led by Chief Executive Officer Sandeep Mathrani, said it has implemented enhanced cleaning measures and redesigned offices to allow for physical distancing. Shared offices around the world emptied out as the number of coronavirus cases skyrocketed earlier this year. It's unclear when or if tenants will return as many companies adapt to working from home.

In Japan, WeWork is set to lose a major tenant, and its short-term leases make it vulnerable to budget cuts. Still, it has signed new tenants, including Microsoft Corp. in Tel Aviv and Merck & Co. in New Jersey.

WeWork is on track to have positive cash flow in 2021, Executive Chairman Marcelo Claure told the Financial Times last month, without providing specifics.

The company had previously targeted becoming cash-flow positive by 2023 and positive adjusted earnings before interest, taxes, depreciation and amortization by 2021. The company's bonds maturing in 2025 last traded at 67.25 cents on the dollar, according to Trace pricing data.