NEW YORK — Cash-strapped WeWork, the office-sharing company that is trying to negotiate a financial lifeline, has a new problem that may prove costly. It has closed about 2,300 phone booths at some of its 223 sites in the United States and Canada after it says it discovered elevated levels of formaldehyde.
After a tenant complained of odour and eye irritation, WeWork began testing and based on the results took 1,600 phone booths out of service, the company said in the email to tenants, which it calls members. “The safety and well-being of our members is our top priority and we are working to remedy this situation as quickly as possible,” WeWork said in a statement.
It is currently in talks for a multi-billion dollar rescue deal that could lead to its largest shareholder, Japan’s SoftBank Group Corp, taking control, two people familiar with the matter said. WeWork is also talking to JPMorgan Chase over a possible debt package, they said.“Long-term exposure to formaldehyde, such as that experienced by workers in jobs who experience high concentrations over many years, has been associated with certain types of cancers,” WeWork told tenants in the email.