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WeWork has filed for bankruptcy in the US after failing to recover from the Covid 19 pandemic-induced losses.
The New York-based co-working company reported liabilities of $10bn to $50bn in a Chapter 11 petition filed in New Jersey.
The filing grants the once high-flying startup protection from creditors while it works out a way to reorganise its debts to have a fresh start.
The company had been struggling with a huge debt pile and massive losses incurred during the pandemic that led to its shares falling around 96 per cent this year.
“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,” WeWork chief executive David Tolley said.
“Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet.
“We remain committed to investing in our products, services, and world-class team of employees to support our community,” he added.
Japan’s SoftBank stepped in to keep WeWork afloat, acquiring majority control over the company, but it quickly fell into trouble again.
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