Coworking chain WeWork filed for bankruptcy

The company filed under Chapter 11 of the U.S. Bankruptcy Code, a reorganization to preserve the business and allow it to continue operating. WeWork also plans to file for bankruptcy in Canada, but no timeline has been specified.

WeWork has $19 billion in debt, according to Bloomberg. In its statement, the company said it had $15 billion in assets as of June 30.

The company said it had reached an agreement with holders of 92% of the bonds. As part of the bankruptcy proceedings, WeWork will restructure its debt and refuse to rent unused offices.

The process will only affect the United States and will not affect WeWork branches in other countries or the company’s franchisees. The network committed to serving its partners and suppliers as usual.

• In early November, the WSJ reported on WeWork’s plans to file for bankruptcy. As of early October 2023, the company did not pay interest to its bondholders.
• 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).