WeWork Plans to File for Bankruptcy as Early as Next Week
Once a venture capital-backed star with an astronomical valuation, the flexible office space provider is now preparing for Chapter 11 protection
WeWork is planning to file for bankruptcy as early as next week, according to people familiar with the matter, in what would mark a stunning reversal for the flexible-office-space venture that was once valued at $47 billion.
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WeWork Plans to File for Bankruptcy as Early as Next Week, As Stocks Take The Nosedive Hitting All Time Low#wework #stocks #markets pic.twitter.com/Dpbx2dytBi
— The_Journalbiz (@the_journalbiz) November 1, 2023
WeWork chart, Investing.com
WeWork missed interest payments owed to its bondholders on Oct. 2, kicking off a 30-day grace period in which it needs to make the payments. Failing to do so would be considered an event of default.
On Tuesday, the company said it has struck an agreement with the bondholders to allow it another seven days to negotiate with the stakeholders before a default is triggered.
WeWork declined to comment on what a spokesperson called “speculation.””
In August, the company shook up its board after three directors resigned due to a material disagreement regarding board governance and the company’s strategic direction, according to a securities filing.
As of June, WeWork maintained 777 locations across 39 countries, including 229 locations in the U.S., according to securities filings.
WeWork has an estimated $10 billion in lease obligations due starting from the second half of this year through the end of 2027 and an additional $15 billion starting in 2028, according to public filings.
