SnL is just a fad CONcept that looses munny and is unsustainable, like WeWork.
The business model wasn’t sustainable. WeWorks were losing money hand over foot. To maintain growth, Neumann & Co. needed additional capital to invest in growth, the result of the new growth would lead to more losses, and the cycled continued. The model was flawed, WeWork would need capital injections in perpetuity to subsidize its operations. The company had been a house of cards from the get go. Dodgy, conflict of interest ridden dealsHello, LARRY LEVERTON and JACQUES MORTIMER!!!, didn’t help brighten things either.
The business model is old and proven to be highly volatile. WeWork has a huge fixed expense block while the income is volatile. Comparatively speaking, Germany‘s biggest competitor Regus, has become bankrupt 4 times over the past 15 years.
A friend who wound up with some stock resulting from an acquisition WeWork made said the following
I knew it was going to be a shitshow two years ago when that company sold to WeWork and told me I was getting WeWork stock. I wrote it off then. Anon investor in WeWork
Which was in many investment circles in NYC at least the de-facto sentiment on WeWork as a company, it was for all intents and purposes, a shitshow.
AI
