WeWork goes bankrupt, capping co-working company’s downfall
The firm got to a sweeping debt restructuring deal in early on 2023, but rapidly fell under trouble once more. It said in August that there was “significant question” regarding its capacity to continue running. Weeks afterwards, it claimed it would certainly renegotiate nearly all its contract and take out from “underperforming” locations.
Various other shared office space companies have actually similarly stumbled after the pandemic reversed working practices. Knotel Inc. and subsidiaries of IWG Plc asked for case of bankruptcy in 2021 and 2020, respectively.
WeWork’s realty impact sprawled across 777 areas in 39 countries since June 30, with occupancy near 2019 levels. But the company continues to be profitless.
The New York-based company listed both the properties and responsibilities in the range of US$ 10 billion ($13.5 billion) to US$ 50 billion in a Chapter 11 petition submitted in New Jersey. The submission lets WeWork to keep running while it works out a plan of action to repay its financial obligations.
Former high-flying start-up WeWork Inc. filed for case of bankruptcy, marking a new low for the co-working business that battled to recuperate out of the pandemic and its failed initial offering in 2019.
The company went public in 2021 with a combination with a special function acquisition company, two years after its organized IPO was infamously scuttled amid investor problems concerning the business’s control, appraisal and expansion prospects. The failed deal caused creator Adam Neumann’s resignation as president and brought about a remarkable fall off in WeWork’s assessment, which previously stood as great as US$ 47 billion.