WeWork goes bankrupt, signs pact with creditors to cut debt

The November 6 Chapter 11 filing in New Jersey listed assets of $15bn.

Former high-flying startup WeWork filed for bankruptcy listing nearly $19 billion dollar of debts, a fresh low for the co-working company that struggled to recover from the pandemic.

The firm’s undoing arguably started in 2019. In a matter of months, the company went from planning an IPO to laying off thousands and procuring a multi-billion-dollar bailout. While WeWork reached a sweeping debt restructuring deal in early 2023, it quickly fell into trouble again. In August, it said that there was “substantial doubt” about its ability to continue operating. Weeks later, it said it would renegotiate nearly all its leases and withdraw from “underperforming” locations.

Reject leases “WeWork is requesting the ability to reject the leases of certain locations, which are largely non-operational and all affected members have received advanced notice,” it said in the statement. ADVERTISEMENT CONTINUE READING BELOW WeWork said it intends to file recognition proceedings in Canada, though its locations elsewhere are not part of the bankruptcy process.

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