The black series continues for WeWork after having hit the headlines with a succession of rather surreal setbacks – a division by 10 of its virtual stock market value, the renunciation of an IPO, the takeover by the Japanese holding SoftBank and the emergency injection of 4.5 $ Bn of capital in the form of a loan.
Bad news keeps coming with the “predictable”: WeWork lost $ 1.25bn in Q3, the heaviest financial mess in its history … but also the unforeseen and “heavy” since New York City is claiming a $ 600 million tax backlog (WeWork operates 44 high-end coworking sites in Manhattan).
This would come from sums not paid to US Tax while WeWork grants months of free service (therefore no income, but goods nonetheless taxable as the owner) to lure customers.
Experts fear that the same kind of misadventure hangs in their face in Washington State or California where WeWork operates a hundred other real estate complexes.
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