WeWork, which was once valued at $47 billion, declares bankruptcy

WeWork filed for Chapter 11 bankruptcy protection in federal court in New Jersey on Monday, saying it had reached agreements with the vast majority of its secured note holders and planned to reduce «non-operational» leases.

According to a press release, the bankruptcy case is confined to WeWork sites in the United States and Canada. According to an initial filing, WeWork reported liabilities ranging from $10 billion to $50 billion.

WeWork has recently experienced one of the most stunning company crashes in modern US history. The company attempted and failed to go public five years ago, and was valued at $47 billion in a financing backed by Masayoshi Son’s SoftBank in 2019.

The Covid epidemic exacerbated the misery by causing many businesses to quickly terminate their leases, and the economic downturn that followed drove even more clients to close their doors.

WeWork debuted in 2021 as a special purpose acquisition business but has since lost around 98% of its value. The company announced a 1-for-40 reverse stock split in mid-August to get its shares trading above $1 again, which is required to preserve its New York Stock Exchange listing.

According to regulatory documents, the company leases millions of square feet of office space in 777 sites across the world.

WeWork has retained the legal services of Kirkland & Ellis and Cole Schotz. C Street Advisory Group and Alvarez & Marsal will assist PJT Partners as its investment bank.