Tuesday, 7 November 2023

WeWork Files For Chapter 11 Bankruptcy

WebProNews
WeWork Files For Chapter 11 Bankruptcy

WeWork announced it is filing for Chapter 11 bankruptcy just days after it was reported the company was close to taking that step.

Once valued at a whopping $47 billion, WeWork was never able to deliver on its promise or navigate the economic challenges and rising interest rates post-pandemic. The company warned in early August that there was “substantial doubt” regarding its “ability to continue as a going concern.”

The company has followed through with the expected bankruptcy, announcing it is entering Chapter 11 proceedings in an effort restructure and “drastically reduce its existing funded debt.”

David Tolley, CEO of WeWork said, “It is the WeWork community that makes us successful. Our more than half-million members around the world turn to us for the best-in-class spaces, hospitality, and technology that our 2,500 dedicated employees and valued partners provide. WeWork has a strong foundation, a dynamic business, and a bright future.”

“Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet,” Tolley continued. “We defined a new category of working, and these steps will enable us to remain the global leader in flexible work. 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. We remain committed to investing in our products, services, and world-class team of employees to support our community.”

WeWork Files For Chapter 11 Bankruptcy
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