Highlights

  • WeWork reported liabilities of $10bn to $50bn
  • WeWork was founded in 2010

Latest news

‘The Apprentice’: Sebastian Stan set to take on the role of former US President Donald Trump in biopic

‘The Apprentice’: Sebastian Stan set to take on the role of former US President Donald Trump in biopic

Nikhil Gupta charged in US | matter of concern, contrary to govt policy: India

Nikhil Gupta charged in US | matter of concern, contrary to govt policy: India

UP woman who went to Pakistan to marry Facebook friend returns to India

UP woman who went to Pakistan to marry Facebook friend returns to India

Surat plant fire: bodies of 7 workers recovered, 24 injured being treated

Surat plant fire: bodies of 7 workers recovered, 24 injured being treated

Narayana Murthy pushes for three shifts for infrastructure growth

Narayana Murthy pushes for three shifts for infrastructure growth

Shared workspace giant WeWork files for bankruptcy

WeWork, known for renting on flexible terms to start-ups and freelancers, was once seen as the future of the office

Shared workspace giant WeWork files for bankruptcy

WeWork Bankruptcy: WeWork, the beleaguered coworking giant known for its shared office space rentals, has announced its filing for bankruptcy in the United States. The move, aimed at restructuring its debt, was confirmed by the company on Friday.

In its statement, WeWork stated, "To successfully pursue its objectives, WeWork Inc. and certain affiliated entities have sought protection under Chapter 11 of the U.S. Bankruptcy Code and plan to initiate recognition proceedings in Canada." It also clarified that this filing does not affect its franchises operating outside these specific locations.

WeWork's Troubles: Bankruptcy Filing and Debt Restructuring

According to the bankruptcy filing made in the New Jersey federal court, WeWork disclosed liabilities ranging from $10 billion to $50 billion. This bankruptcy filing provides WeWork with legal safeguards against its creditors and enhances its negotiation capabilities with landlords.

WeWork's demand for shared office spaces suffered a blow in the wake of a tumultuous 2019, characterized by a failed attempt to raise capital through a public listing, which tarnished its reputation and led to the removal of co-founder Adam Neumann. The subsequent global pandemic forced many offices to close, compelling people to work from home.

During the first half of this year, WeWork incurred losses exceeding $1 billion, primarily due to the high costs associated with operating its offices and other expenses.

WeWork India Remains Unaffected by Global Restructuring

Meanwhile, the CEO of WeWork India assured employees that WeWork India operates independently from WeWork Global and would not be affected by this strategic restructuring. WeWork India remains a separate entity and will continue its operations as usual. The Chapter 11 filing primarily focuses on the debt and leases of WeWork Global in the U.S. and Canada, leaving the global entity's operations unaffected.

WeWork India is predominantly backed by Embassy Group, its majority stakeholder, which remains committed to investing in the company's future. The statement emphasized their dedication to providing innovative flexible workspace solutions in the region, highlighting their profitability since 2021 and their commitment to continued growth and success in the flexible workspace industry.

WeWork's Turbulent Journey: From Success to Bankruptcy

Founded in 2010, WeWork claimed in June of this year to have more than 700 locations worldwide and approximately 730,000 members.

Up Next

Shared workspace giant WeWork files for bankruptcy

Shared workspace giant WeWork files for bankruptcy

Narayana Murthy pushes for three shifts for infrastructure growth

Narayana Murthy pushes for three shifts for infrastructure growth

Tata Technologies IPO: Shares list at 140% premium over IPO price

Tata Technologies IPO: Shares list at 140% premium over IPO price

India's Q2FY24 GDP growth expected to outpace RBI's projections

India's Q2FY24 GDP growth expected to outpace RBI's projections

Gold, Silver Rates today November 30, 2023: Check Prices in Mumbai, Delhi, Chennai

Gold, Silver Rates today November 30, 2023: Check Prices in Mumbai, Delhi, Chennai

US 3rd quarter's economic growth revised upward to a 5.2% annual rate

US 3rd quarter's economic growth revised upward to a 5.2% annual rate

More videos

Bharti Airtel shares cross Rs 1,000 mark for the first time; m-cap close to Rs 6 lakh crore

Bharti Airtel shares cross Rs 1,000 mark for the first time; m-cap close to Rs 6 lakh crore

Union cabinet extends PMGKAY: Free ration scheme for 81 crore till 2028

Union cabinet extends PMGKAY: Free ration scheme for 81 crore till 2028

Startup to Scaleup| Focus on Radian Finserv that aims to transform the gold loans landscape

Startup to Scaleup| Focus on Radian Finserv that aims to transform the gold loans landscape

Income Tax department conducts survey on Hinduja Group entities for alleged tax evasion

Income Tax department conducts survey on Hinduja Group entities for alleged tax evasion

UPSC toppers restricted from earning through coaching institute ads

UPSC toppers restricted from earning through coaching institute ads

Gautam Adani returns to top 20 rich list amid stock surge

Gautam Adani returns to top 20 rich list amid stock surge

BSE listed companies' market capitalisation hits $4 trillion for the first time ever

BSE listed companies' market capitalisation hits $4 trillion for the first time ever

Byju’s valuation: Prosus slashes it to below $3 billion

Byju’s valuation: Prosus slashes it to below $3 billion

Uttarakhand Tunnel Rescue: From Gautam Adani to Anand Mahindra, here's what business leaders had to say

Uttarakhand Tunnel Rescue: From Gautam Adani to Anand Mahindra, here's what business leaders had to say

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.