WeWork files for bankruptcy
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The news: WeWork, the office sharing company once valued at USD47 billion ($72.5 billion), has applied for bankruptcy. The filing will apply to the company's businesses in the US and Canada, while global operations are expected to continue as usual.
The numbers: WeWork reported liabilities of between USD10 billion and USD50 billion, CNBC reports. The company's chief executive of less than a month, David Tolley, announced the restructuring plan on Monday. WeWork has more than 2500 employees and more than half a million members, the company said.
The context: WeWork was valued at USD47 billion in 2019, but an attempt to go public imploded over scepticism for the company's hefty losses and business model. The company finally went public in 2021 for a much lower valuation. Doubts about WeWork's prospects and balance sheet have intensified in 2023, leading to the exit of several executives including CEO Sandeep Mathrani.
What they said: "I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement," Tolley said in a statement,
"We remain committed to investing in our products, services, and world-class team of employees to support our community."
The sources: WeWork Media Release, CNBC
