WeWork goes bankrupt, capping co-working company’s downfall
The New York-based business detailed both assets and obligations in the range of US$ 10 billion ($13.5 billion) to US$ 50 billion in a Chapter 11 petition filed in New Jersey. The declaring permits WeWork to keep working whilst it formulates a plan of action to pay back its financial debts.
Previous high-flying start-up WeWork Inc. applied for personal bankruptcy, denoting a fresh marked down for the co-working service that struggled to recover out of the pandemic and its unsuccessful initial public offering in 2019.
The company got to a sweeping unpaid debt rebuilding agreement in early on 2023, yet rapidly fell under difficulty once more. It stated in August that there was “considerable uncertainty” concerning its ability to continue running. Weeks later, it stated it would renegotiate almost all its lease contract and remove from “underperforming” sites.
Various other shared office firms have even fallen down after the pandemic upended working routines. Knotel Inc. and branch of IWG Plc pursued bankruptcy in 2021 and 2020, respectively.
The company went public in 2021 through a combination with a special purpose acquisition company, 2 years soon after its organized IPO was infamously scuttled in the middle of capitalist issues concerning the company’s administration, evaluation and growth leads. The failed transaction resulted in creator Adam Neumann’s resignation as president and caused a remarkable pull in WeWork’s valuation, which previously ranked as high as US$ 47 billion.
WeWork’s realty presence sprawled across 777 locations in 39 countries since June 30, with tenancy near 2019 status. However the company continues to be unprofitable.