SA WeWork thriving, midst We-Work bankruptcy

WeWork, once the most valuable startup with a worth of $47 billion, has now filed for bankruptcy, planning to restructure over $3 billion in debt through the Chapter 11 process. As losses mount from the fallout of the office property market, heavily impacted by the Covid-19 pandemic and rising interest rates, concerns have emerged about the future of the company. However, WeWork South Africa stands strong, assuring that it's business as usual in the region. Stefano Migliore, the CEO of WeWork South Africa, joined CNBC Africa to discuss the company's position amidst the reorganization in the US and Canada. Migliore emphasized that WeWork South Africa remains independent, both owned and operated in the region. While acknowledging the challenges faced by WeWork in other markets, he highlighted the buoyancy and positivity of the South African operations. The company is expanding its Cape Town offices, showcasing a commitment to the WeWork mission of creating spaces that enable people to do their best work. The key theme of the conversation with Stefano Migliore was the resilience of WeWork South Africa in the face of global uncertainty surrounding the parent company's finances. Three key points emerged from the interview: 1. Independence and Growth: Migliore underscored the independence of WeWork South Africa, noting that the operations in the region began in 2019, distinguishing them from the legacy issues affecting the parent company. The company is optimistic about market opportunities and is witnessing healthy growth, evident in its expansion plans. 2. Resilience Post-COVID-19: WeWork South Africa has navigated the challenges posed by the Covid-19 pandemic by adapting to changing trends in workspace preferences. The rise of remote and hybrid working arrangements has accelerated the demand for flexible office spaces, benefiting companies like WeWork. Occupancy rates are healthy, reflecting a positive outlook for the future. 3. Profitability and Sustainability: Despite the broader challenges in the commercial real estate sector, WeWork South Africa remains profitable. The company's business model, focused on flexible and serviced office spaces, has proven to be resilient in the current environment. With a strong emphasis on hospitality and enabling productivity, WeWork South Africa continues to attract tenants and drive growth. In a concluding remark, Migliore confirmed that WeWork South Africa is profitable, underscoring the success of the company's strategy in the local market. The CEO's confidence in the sustainability and growth prospects of WeWork South Africa provides reassurance amid concerns about WeWork's global restructuring efforts.