Coworking chain WeWork plans to file for bankruptcy “next week,” the WSJ reports, citing sources familiar with the situation.
The newspaper’s interlocutors claim that the application can be submitted under “Chapter 11”, which allows restructuring and continuation of activities.
As of early October 2023, WeWork failed to make an interest payment to its bondholders. As a result, a 30-day grace period was initiated, during which the company must make payments. If this condition is not met, it will be considered non-compliance.
On October 31, the company said it had reached an agreement with bondholders: WeWork has seven additional days to find a solution. Reports about WeWork’s possible bankruptcy were called speculation.
- WeWork was founded by Adam Newman in 2010; The company develops a network of coworking spaces around the world. In 2019, Newman stepped down as head of the company amid complaints from investors.
- Doubts about the viability of the business model led to a drop in WeWork’s valuation from $47 billion to $20-$30 billion, and the IPO was also postponed. The company eventually went public in 2021, without going through an initial public offering (through a merger with SPAC company BowX Acquisition).
Author:
Anastasia Marina
Source: RB
I am a professional journalist and content creator with extensive experience writing for news websites. I currently work as an author at Gadget Onus, where I specialize in covering hot news topics. My written pieces have been published on some of the biggest media outlets around the world, including The Guardian and BBC News.
