Auditors say WeWork’s Australian business still faces uncertainty over whether it can stay afloat even though its US parent emerged from bankruptcy this year.
WeWork’s 15 Australian co-working hubs remained open and trading as its US parent filed for bankruptcy last year. But the co-working giant has nevertheless sought to make its Australian operation leaner by closing some facilities and reducing its footprint.
It posted a $46.7 million loss over the 2023 year, a considerable improvement on the $211.1 million loss recorded a year earlier, accounts filed with the corporate regulator show.
However, its auditors are worried by the extent of WeWork’s debt, with net current liabilities at $102.3 million and overall liabilities of $423. 3 million.
The auditors, RSM Australia, warned there was a “material uncertainty” that “cast significant doubt” on WeWork Australia’s “ability to continue as a going concern”.
That warning was issued even though WeWork’s own directors outlined how the US parent had restructured its operations, cut $US4 billion ($5.9 billion) in debt and raised $US400 million in new equity before exiting bankruptcy in June this year.
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