WeWork’s management issued the dreaded “going concern” warning to investors alongside its second-quarter earnings report on Tuesday, admitting that “losses and negative cash flows” have left them considering all “strategic alternatives” to keep their office-space leasing business afloat—including bankruptcy.
A going concern warning can be filed by auditors or a company’s management and serves to caution investors that "it is probable" the firm in question won’t have enough cash to pay its debts over the next 12 months, leaving substantial doubt that it can continue to operate.
