US: WeWork, which was once valued at $47 billion, has been filed for bankruptcy in the US.
WeWork’s filing will give it protection from its creditors and landlords as it restructures its debts. Based on its latest share price, the company is now worth less than $50 million.
The bankruptcy will affect the company’s business in the US and Canada. The company said its coworking spaces remain open and operational, including in the UK.
The BBC has revealed the contents of an email to tenants in London, in which WeWork said it remained “fully committed” to providing its services and planned to remain “in the vast majority of our buildings”.
As of the end of June, the company had more than 700 sites around the world and about 730,000 members.
WeWork said in a statement late on Monday, that bankruptcy protection would allow it to “further rationalise its commercial office lease portfolio” while trying to ensure continuity for its users.
David Tolley, WeWork‘s chief executive, said: “Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet. 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.”
Co-founder Adam Neumann, who was ousted from the company, said the bankruptcy was “disappointing”.
“It has been challenging for me to watch from the sidelines since 2019 as WeWork has failed to take advantage of a product that is more relevant today than ever before,” Neumann said. “I believe that, with the right strategy and team, a reorganisation will enable WeWork to emerge successfully.”
