U.S. commercial real estate company WeWork, which provides shared workspaces for technology startups and is on the brink of collapse after massive losses, has decided to abandon its plans to enter the Romanian market.
Last summer, WeWork reached an agreement with local developer Forte Partners to lease a new office building next to the Telephone Palace on Victoriei avenue.
Under the contract signed with Forte Partners, WeWork would have entered a market where its international competitors such as Spaces and Mindspace are already present.
However, WeWork's decision to enter Romania coincided with the start of a wave of financial problems, which culminated in the company's largest shareholder, Japanese conglomerate SoftBank, stepping in to save it from bankruptcy.
Against this background, WeWork has now decided to give up on the expansion in Romania, according to Profit.ro sources.
The company’s officials confirmed the information. “Although we have decided, in the end, not to go further with leasing the building in Romania, we will continue to consider other opportunities to bring flexible space to this market in the future,” a WeWork spokesman told Profit.ro.