WeWork files for Chapter 11
WeWork announced that it has commenced a “comprehensive reorganization to strengthen its capital structure and financial performance and best position the company for future success.”
As part of this plan, the company filed for Chapter 11 bankruptcy protection.
The bankruptcy filing is limited to WeWork’s locations in the US and Canada. WeWork reported liabilities ranging from $10 billion to $50 billion, according to an initial filing.
As part of the filing, 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 is the WeWork community that makes us successful. Our more than half-million members around the world turn to us for the best-in-class spaces, hospitality, and technology that our 2,500 dedicated employees and valued partners provide. WeWork has a strong foundation, a dynamic business, and a bright future. Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet. We defined a new category of working, and these steps will enable us to remain the global leader in flexible work. 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. We remain committed to investing in our products, services, and world-class team of employees to support our community.” – David Tolley, CEO of WeWork.
