Workspace supplier WeWork Inc on Tuesday raised “substantial” doubt concerning its capability to proceed as a going concern, warned of a potential chapter and added three of its board members had stepped down. Its shares have been down 27 % in prolonged buying and selling.

However Karan Virwani, CEO, WeWork India advised CNBC-TV18 that the Indian enterprise won’t impacted by the worldwide growth.

“Since inception, WeWork India has been backed by the Embassy Group who holds the majority stake and control to run and operate WeWork Global’s business in India. Any development globally has no impact on our business here. Despite the challenges brought on by the pandemic, we emerged profitable early last year. We ended FY 2022-23 with a revenue of  Rs 1400 cr, and Rs 250 cr in earnings. We have built a strong network of local stakeholders, members, landlords and developers who are increasingly looking to partner with us.” he stated.

On the worldwide entrance WeWork has additionally issued a warning that its administration wanted to boost further capital to maintain the agency afloat and keep liquidity over the subsequent 12 months.

“If we are not successful in improving our liquidity position and the profitability of our operations, we may need to consider all strategic alternatives, including restructuring or refinancing our debt, seeking additional debt or equity capital, reducing or delaying our business activities and strategic initiatives, or selling assets, other strategic transactions and/or other measures, including obtaining relief under the US Bankruptcy Code,” the corporate stated, CNBC reported.

The firm had beforehand stated its actions to restructure debt and operations had eased worries over its capability to proceed as a going concern.

WeWork struck offers in March to chop its debt by about $1.5 billion and prolong the date of some maturities to protect money.

The firm, which is but flip a revenue since going public, has struggled to deal with the troubles within the tech sector, the place mass layoffs have turn out to be rampant.

It has additionally seen an exodus of high executives, together with the resignation of CEO Sandeep Mathrani and CFO Andre Fernandez this 12 months, compounding its troubles.

Mathrani was employed in 2020 and tasked with the corporate’s turnaround amid rising investor considerations over company governance requirements.

WeWork on Tuesday stated it was nonetheless persevering with its seek for a everlasting CEO and that it had added 4 board members after three members stepped down.

With inputs from Reuters