WeWork Files For Chapter 11 Bankruptcy In New York: Report
Bloomberg earlier reported that WeWork is discussing improving balance sheets and streamlining its real estate footprint with creditors. A seven-day forbearance agreement between the company and its creditors was also signed on 30 October, according to the company’s regulatory filing
Co working space provider WeWork has filed for Chapter 11 bankruptcy in New Jersey, as reported by Bloomberg. According to a Wall Street Journal article published on 1 November, WeWork intended to file for bankruptcy under Chapter 11 in New Jersey. The news sent the company’s stock plunging 59 per cent.
Bloomberg earlier reported that WeWork is discussing improving balance sheets and streamlining its real estate footprint with creditors. A seven-day forbearance agreement between the company and its creditors was also signed on 30 October, according to the company’s regulatory filing.
The New York-based business saw rapid growth in its early years, rising to a valuation of USD 47 billion, but scrutiny caused the bubble to burst. The company started down a path towards failure after an ill-advised initial public offering (IPO) and issues with its co-working model during the Covid 19 pandemic.
Five years ago, WeWork was one of the most popular initial public offerings (IPOs) ever, with a valuation close to USD 50 billion. The stock officially trades for less than USD 1 per share, having dropped 99.8 per cent since its IPO.
