WeWork to reportedly file for bankruptcy

A source told the outlet the co-working company will file the Chapter 11 petition in New Jersey and could happen as early as next week. Following the reports, shares in the SoftBank Group-backed business fell by 32% in extended trading.  

In response, a WeWork spokesperson said: “We do not comment on speculation.” 

The news comes just a day after the business said it had entered into an agreement with its creditors for a temporary postponement of payments for some of its debt. It had net long-term debts of $2.9bn as of the end of June, and more than $13bn in long-term leases.  

If the filing does take place, it could mark another low in what has been an ongoing decline for the business – which, at its height in early 2019, was valued at $47bn – but has now lost almost 98% of its stock market valuation in the last year.  

The New York-based firm had been struggling since its initial attempt to sell shares on the stock market collapsed in 2019. A week before this had been scrapped, founder Adam Neumann stepped down as chief executive.  

That same year, SoftBank – which began investing in WeWork in 2017 – announced a deal that saw the investment firm buy out around 80% of the real estate company. Two years later, the firm was finally listed on the New York Stock Exchange with a much lower valuation.

In August of this year, it had raised “substantial doubt” about its ability to continue operations, with numerous top executives – including its chief executive Sandeep Mathrani – leaving the business.