February 23, 2024

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WeWork shares fall 37% after bankruptcy reports

WeWork shares fall 37% after bankruptcy reports

WeWork office building in Los Angeles, California. The Wall Street Journal and Reuters reported that the company plans to file for bankruptcy as early as next week.


London
CNN

WeWork shares fell 37% in pre-market trading on Wednesday, after news reports that… Company It plans to file for bankruptcy as early as next week.

The flexible workspace provider is considering filing for Chapter 11 bankruptcy protection in New Jersey, the Wall Street Journal and Reuters reported Tuesday, citing people familiar with the matter.

A WeWork spokesperson told CNN that the company would not comment on “speculation.”

Earlier Tuesday, WeWork (weThe company said it had agreed with creditors to extend a 30-day grace period to make interest payments on some of its debts that were scheduled to expire this week. The company added that the new “sustainability agreement” will expire within seven days.

WeWork was valued at $47 billion at its peak, but struggled to recover after its failed attempt to go public in 2019. At the time, IPO paperwork revealed larger-than-expected losses and potential conflicts of interest related to the company’s founder and CEO. Then-CEO Adam Neumann.

The company eventually went public two years later at a valuation of about $9 billion, but it continued to burn cash and struggled to retain members, who pay to rent desks in WeWork’s office space.

Last August, the company said that “there is significant doubt” about its ability to continue operating.

-This is a developing story and will be updated.