Not that we didn;t know this was going to happen at WeWork:
So, what is going to happen here? The secret is this “Further Streamline Real Estate Footprint” Or, as we’ve said before, this is where the landlords get the shaft at WeWork: “WeWork (NYSE: WE) stock is down another 50% over night on news that they’re about to file for Chapter 11 bankruptcy. We can imagine all sorts of speculative flurries in WE stock as a result – the ability of the memesters and hoddlers to play with such stories is near inexhaustible. However we’d also very strongly suggest that there’s going to be no recovery for the equity here. The landlords aren’t going to allow that. And this is about the landlords too. The idea here is to shaft those landlords – to be able to break the leases. And the thing is, weirdly, that commercial office space has such vast problems right now that the reborn WeWork could even work.”
It really could work too – if they can renegotiate those leases down far enough.