WeWork goes bankrupt, capping co-working company’s downfall
The company reached a sweeping debt rebuilding agreement in earlier 2023, however rapidly fell into issue one more time. It said in August that there was “significant doubt” regarding its capability to keep on running. Weeks soon after, it said it would certainly renegotiate almost all its leases and drop out from “underperforming” locations.
The company went public in 2021 through a mix with a special purpose acquisition company, 2 years after its planned IPO was infamously scuttled amidst investor issues about the company’s governance, evaluation and growth prospects. The unsuccessful transaction led to creator Adam Neumann’s resignation as ceo and resulted in a dramatic slip in WeWork’s evaluation, which previously stood as high as US$ 47 billion.
Other shared office space firms have also stumbled after the pandemic overthrew working practices. Knotel Inc. and branch of IWG Plc pursued case of bankruptcy in 2021 and 2020, respectively.
WeWork’s property impact stretched across 777 places in 39 countries since June 30, with occupancy near 2019 levels. Nevertheless the business continues to be profitless.
The New York-based business detailed both the properties and liabilities in the range of US$ 10 billion ($13.5 billion) to US$ 50 billion in a Chapter 11 request submitted in New Jersey. The declaring enables WeWork to maintain running while it figures out a plan of action to settle its financial obligations.
Past high-flying startup WeWork Inc. filed for personal bankruptcy, denoting a new low for the co-working service that struggled to recoup created by the pandemic and its unsuccessful ipo in 2019.