WeWork plans to file for bankruptcy next week: reports

The news: Embattled flexible workspace provider WeWork plans to file for bankruptcy as early as next week, Reuters has reported, citing an unnamed source.

The numbers: WeWork shares fell more than 30% in after hours trading in New York on Tuesday after the Wall Street Journal first reported the news. The stock has lost 96% of its value this year.

The context: The New York-based WeWork is considering filing a Chapter 11 petition in New Jersey, the WSJ earlier reported. The move comes hours after the debt-laden firm decided to withhold interest payment of about USD6.4 million ($10 million). The company has been in turmoil ever since its plans to go public in 2019 imploded following investor skepticism over its business model of taking long-term leases and renting them for the short term, and on worries over its hefty losses. It finally managed to go public in 2021 at a much-reduced valuation. WeWork raised "substantial doubt" about its ability to continue operations in August, with numerous top executives, including CEO Sandeep Mathrani, departing this year.