Wheels Up lost more than half of its stock market value on Thursday after The Wall Street Journal reported it had hired a law firm specializing in restructuring of companies in financial distress. The company issued a statement say it’s “working with a number of advisors and industry participants around securing new strategic investments, raising capital, and executing previously disclosed strategic divestitures.” With that tumble company shares dropped to $1.24, just 2 percent of their original value when the company went public in 2021.
Wheels Up has never been profitable and the company maintains that it is working towards black ink. Last month company founder Kenny Dichter resigned as CEO amid growing concerns about its viability. Company officials have said bankruptcy is not an option, but it’s not clear if the Thursday report marks a change in the posture. Meanwhile, the statement says it has some ideas on how to keep the company afloat. “Wheels Up Experience continues to progress with redesigned programs to better serve its members and customers in support of our path to profitability,” the statement said.
