WeWork, a multinational flexible workspace company, has reported slower cash collection rates and engagement with its members on payment deferral programmes due to Covid-19.
In the "events after the end of the reporting period" section of its recently published results for one of its Irish subsidiaries, WeWork Community Workspace Ireland, the company outlined some of the effects the Covid-19 pandemic had both globally and in Ireland. The results covered 2019.
It also outlined it had taken steps to mitigate the operational and financial impact of Covid-19 through "proactive negotiations with landlords using a location-by-location based approach for deferrals and abatements" both in Ireland and across the globe. It added WeWork had the goal of creating a "leaner, more efficient organisation".
The subsidiary also reported that across WeWork space-as-a-service locations in Ireland as a whole, it had generally experienced "lower than historic" occupancy levels. It also reported a reduction in sales volumes across both its existing and new locations.
Other issues identified in the section include slower than historical cash collection rates, lowered credit terms from some suppliers, and increased discounts to members. It added WeWork had "engaged with certain members in Ireland as it relates to Covid-19 related payment deferral programmes".
Last May, the Sunday Independent reported a group of Dublin-based tenants of WeWork had formed to negotiate rent payments.
It is understood the group became frustrated with the US-based landlord's response to their individual rent concerns at the outset of Covid-19. WeWork is understood to have offered rent deferrals to some of the companies.
At the time, sources said the group was not satisfied with the offer and joined to discuss their rent issues with WeWork. A source said WeWork refused to negotiate with the group.
WeWork is understood to have engaged with the companies in the group individually as it is unable to discuss their private contracts collectively.
According to reports last May, WeWork had four open buildings and 7,000 members in Dublin.
A WeWork spokeswoman said the results were for a holding company that primarily exists to manage intercompany revenues and payroll and administrative costs for its Irish operations. She claimed the results were therefore "not representing the performance of our Irish business".