WeWork goes bankrupt, capping co-working company’s downfall

The New York-based company detailed each of the possessions and responsibilities in the range of US$ 10 billion ($13.5 billion) to US$ 50 billion in a Chapter 11 petition filed in New Jersey. The filing lets WeWork to stay running whilst it develops a plan to pay back its debts.

WeWork’s property footprint stretched across 777 locations in 39 countries since June 30, with occupancy near 2019 levels. But the enterprise stays profitless.

Former high-flying startup WeWork Inc. declared bankruptcy, denoting a new low for the co-working service that struggled to recoup out of the pandemic and its unsuccessful ipo in 2019.

The firm got to a sweeping unpaid debt restructuring agreement in early on 2023, but swiftly came under problem again. It stated in August that there was “considerable uncertainty” concerning its capability to keep on running. Weeks soon after, it claimed it would renegotiate almost all its leases and withdraw from “underperforming” places.

Midtown Bay condo

The company went public in 2021 via a blend with an unique purpose purchase firm, 2 years soon after its planned IPO was infamously scuttled amidst financier problems concerning the company’s governance, assessment and growth possibilities. The unsuccessful deal caused founder Adam Neumann’s resignation as ceo and resulted in a dramatic slide in WeWork’s assessment, which once stood as strong as US$ 47 billion.

Various other shared office space companies have also lost balance after the pandemic upended working habits. Knotel Inc. and branch of IWG Plc asked for bankruptcy in 2021 and 2020, respectively.

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