WeWork Faces Bankruptcy Proceeding Minus Auditor as EY Quits

Ernst & Young LLP dropped WeWork Inc. as an audit client Monday, one week after the once high-flying office leasing company filed for bankruptcy.

There were no disagreements between the Big Four firm and the company, WeWork said in a securities filing.

WeWork also disclosed Monday it would miss the deadline to file its third-quarter 10-Q. Dealing with the bankruptcy proceedings has tied up financing, accounting, and administrative personnel, the company said. Ernst & Young quitting and the company needing to find a new auditor “will cause further delays,” WeWork said. The company said it didn’t know when the filing would be ready.

• EY started auditing WeWork in 2015, according to the company’s last 10-K filing.
• WeWork filed for bankruptcy two years after being valued at $9 billion and hitting the public markets via merger with a special purpose acquisition company. It failed to go public the traditional route in 2019.