WeWork goes bankrupt, capping co-working company’s downfall
The New York-based company detailed both the possessions and obligations in the range of US$ 10 billion ($13.5 billion) to US$ 50 billion in a Chapter 11 request declared in New Jersey. The filing lets WeWork to stay running whilst it figures out a plan to pay back its unpaid debts.
WeWork’s realty presence sprawled across 777 locations in 39 nations since June 30, with tenancy near 2019 levels. Nevertheless the company stays profitless.
Previous high-flying new venture WeWork Inc. applied for case of bankruptcy, marking a fresh low for the co-working firm that struggled to recoup from the pandemic and its unsuccessful initial public offering in 2019.
The firm made it to a sweeping unpaid debt rebuilding agreement in early 2023, but swiftly fell under trouble repeatedly. It said in August that there was “significant uncertainty” about its capability to keep on running. Weeks soon after, it stated it would certainly renegotiate nearly all its contract and remove from “underperforming” locations.
The firm went public in 2021 via a mixture with an unique function purchase company, two years after its planned IPO was infamously scuttled in the middle of investor worries concerning the firm’s control, appraisal and development prospects. The failed deal led to owner Adam Neumann’s resignation as chief executive officer and resulted in a remarkable fall off in WeWork’s valuation, which once ranked as high as US$ 47 billion.
Other common office companies have also lost balance after the pandemic overthrew working practices. Knotel Inc. and subsidiaries of IWG Plc sought case of bankruptcy in 2021 and 2020, respectively.