WeWork, once valued at $47 billion, files for bankruptcy
Office-sharing company WeWork filed for Chapter 11 bankruptcy protection in federal court Monday.
Aliver
The WeWork logo is displayed outside of a shared commercial office space building in Los Angeles, California on August 8, 2023. Embattled office-sharing firm WeWork on August 8 warned US regulators that it is worried about its survival. Citing financial losses, cash needs, and a drop in memberships, WeWork said in a filing with the Securities and Exchange Commission (SEC) that "substantial doubt exists about the company's ability to continue as a going concern." (Photo by Patrick T. Fallon / AFP) (Photo by PATRICK T. FALLON/AFP via Getty Images)
Patrick T. Fallon | Afp | Getty Images
Office-sharing company WeWork filed for Chapter 11 bankruptcy protection in New Jersey federal court Monday, saying that it had entered into agreements with the vast majority of its secured note holders and that it intended to trim "non-operational" leases.
The bankruptcy filing is limited to WeWork's locations in the U.S. and Canada, the company said in a press release. WeWork reported liabilities ranging from $10 billion to $50 billion, according to an initial filing.
"I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement," WeWork CEO David Tolley said in a press release. "We remain committed to investing in our products, services, and world-class team of employees to support our community.
WeWork has suffered one of the most spectacular corporate collapses in recent U.S. history over the past few years. Valued in 2019 at $47 billion in a round led by Masayoshi Son's SoftBank, the company tried and failed to go public five years ago.
The Covid pandemic caused further pain as many companies abruptly ended their leases, and the economic slump that followed led even more clients to close their doors.
It disclosed in an August regulatory filing that bankruptcy could be a concern.
WeWork debuted through a special purpose acquisition company in 2021 but has since lost about 98% of its value. The company in mid-August announced a 1-for-40 reverse stock split to get its shares trading back above $1, a requirement for keeping its New York Stock Exchange listing.
WeWork shares had fallen to a low of about 10 cents and were trading at about 83 cents before the stock was halted Monday.
Former co-founder and CEO Adam Neumann said that the filing was "disappointing."
Adam Neumann, CEO of WeWork.
Eduardo Munoz | Reuters
