Former startup WeWork Inc. has filed for bankruptcy in the United States, marking a significant setback for the co-working company. WeWork has struggled to recover from the impact of the pandemic and its failed initial public offering in 2019. The New York-based company filed a Chapter 11 petition in New Jersey, listing assets and liabilities in the range of $10 billion to $50 billion. This filing allows WeWork to continue operating while it develops a plan to repay its debts.
Earlier this year, WeWork reached a debt restructuring deal, but quickly found itself in trouble again. In August, the company expressed “substantial doubt” about its ability to sustain operations. Shortly after, it announced plans to renegotiate most of its leases and exit underperforming locations.
Despite having a vast real estate presence across 777 locations in 39 countries, with occupancy levels approaching those of 2019, WeWork remains unprofitable. The company went public in 2021 through a merger with a special purpose acquisition company, two years after its highly anticipated IPO fell through due to investor concerns about governance, valuation, and growth prospects. The failed IPO resulted in founder Adam Neumann stepping down as CEO and a significant decline in WeWork’s valuation, which had once reached $47 billion.
Other shared office space companies have also faced challenges following the pandemic’s disruption of work patterns. Knotel Inc. and subsidiaries of IWG Plc sought bankruptcy protection in 2021 and 2020, respectively.
(Note: This article has been generated automatically and has not been edited by NDTV staff.)
