Cash-strapped WeWork, the office-sharing company that is trying to negotiate a financial lifeline, has a new problem that may prove costly. From a report: 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. The company, which abandoned plans for an initial public offering last month after investors questioned its mounting losses and the way it was being run, said in an email to its tenants on Monday that the chemical could pose a cancer-risk if there is long-term exposure.

After a tenant complained of odor 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. An additional 700 booths are closed while more testing is conducted, it said. All the phone booths closed were installed over the past several months, WeWork said. Bloomberg columnist Matt Levine quips: “I don’t understand what is happening here. Did WeWork founder Adam Neumann disturb a mummy and trigger an ancient curse? Was a WeWork built on a haunted graveyard, unleashing powerful dark energies and also elevated levels of formaldehyde? How do you have such a relentless parade of negative financial news and then find out that your phone booths cause cancer? ‘Our phone booths might cause cancer’ was not an IPO risk factor. Nobody had ‘phone booths cause cancer’ on their WeWork Disaster Bingo cards.”

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Source: Slashdot – In New Headache, WeWork Says It Found Cancer-Causing Chemical in Its Phone Booths