WeWork, the New York-based company listed both assets and liabilities in the range of $10 billion to $50 billion in a Chapter 11 petition.
In a significant turn of events, the once-thriving startup WeWork Inc. has filed for bankruptcy, underscoring the ongoing challenges faced by the co-working company as it sought to rebound from the impact of the pandemic and its ill-fated initial public offering in 2019. WeWork, headquartered in New York, has reported assets and liabilities within the range of $10 billion to $50 billion in its Chapter 11 petition filed in New Jersey. This bankruptcy filing enables WeWork to continue its operations while devising a strategy to address its outstanding debts.
The company reached a sweeping debt restructuring deal in early 2023, but quickly fell into trouble again. It said in August that there was “substantial doubt” about its ability to continue operating. Weeks later, it said it would renegotiate nearly all its leases and withdraw from “underperforming” locations.
WeWork’s real estate presence expanded to 777 locations in 39 countries by June 30, with occupancy levels approaching those of 2019. Despite this extensive reach, the company continues to operate at a loss.
In 2021, WeWork finally went public, employing a merger with a special purpose acquisition company (SPAC). This move came two years after the company’s highly publicized initial public offering was derailed due to investor concerns about governance, valuation, and growth prospects. The failed IPO resulted in the resignation of founder Adam Neumann from his role as CEO and a dramatic decline in WeWork’s valuation, which had once soared to as high as $47 billion.