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WeWork South Africa distances itself from WeWork Global’s bankruptcy

November 2, 2023
in Technology
WeWork South Africa distances itself from WeWork Global’s bankruptcy
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WeWork South Africa is distancing itself from WeWork Global’s bankruptcy filing, stating to TechCabal that it is in no way affiliated with the company.

WeWork South Africa has stated that it won’t be affected by WeWork Global’s looming Chapter 11 bankruptcy filing in the US. In March, WeWork entered a franchise “partnership” with SiSebenza, a pan-African real estate investor, which gave SiSebenza the exclusive right to operate WeWork’s existing locations in South Africa. The deal also granted SiSebenza exclusive rights to grow and operate the WeWork franchise in Ghana, Kenya, Mauritius and Nigeria.

Although the initial agreement was referred to by both parties as a partnership, WeWork SA has stated in a communication to TechCabal that it is in no way affiliated with WeWork Global. It also added that it has 100% ownership of WeWork SA.

“We want to emphasise that WeWork South Africa operates as an entirely separate entity, with full ownership by SiSebenza, and no affiliation with WeWork Global. This means that the recent global actions undertaken by WeWork Global will have no impact on our local operations in South Africa,” the company said in a statement to TechCabal.

WeWork opened its first South Africa location in 2019 at WeWork The Link in Rosebank, Johannesburg, followed by WeWork 80 Strand in Cape Town and WeWork 155 West Street in Sandton, Johannesburg.

It appears most franchisees of WeWork Global are distancing themselves from the troubled company. WeWork India also assumed the same stance as WeWork South Africa about the bankruptcy.

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