A few weeks ago, I shared an important step we are taking as part of our strategic plan to build a stronger and more profitable business: a process of global engagement with our landlords to renegotiate nearly all of our leases. We are making progress in these ongoing discussions and are grateful to those who have partnered with us so far to find mutually beneficial and future-facing solutions.
As these negotiations progress, we intend to advance in parallel a conversation with our stakeholders about strengthening our balance sheet. By improving our capital structure, we will be better positioned to continue to invest in our industry-leading member experience and in our own economically sustainable growth for years to come.
As such, today we entered into the 30-day grace period provided to us under our secured notes’ indentures and withheld the associated interest payments. We believe this action is best aligned with our business objectives, and also enhances liquidity as the Company continues to take action to implement its strategic plan. During this period, we also intend to begin discussions with certain stakeholders in our capital structure to keep WeWork on track for long-term success. We currently have sufficient liquidity to make the associated interest payments and may in the future decide to do so.
Today’s action has no impact on our members, employees or our day-to-day operations. Members will continue to receive the exceptional service they signed up for, and the WeWork team remains dedicated to supporting our community around the globe.
A financially stronger WeWork is better for the entire WeWork ecosystem. While there is still more work to be done, we believe we are on the right path to address and move beyond our current challenges. We are working to make significant progress over the next few months to remain the global leader in flexible work. As I said back in early September, WeWork is here to stay.
David Tolley
Chief Executive Officer, WeWork
