WeWork Files for Bankruptcy

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07 November 2023

In an official statement, WeWork has confirmed that it has filed for Chapter 11 bankruptcy.

This will affect its business in the USA and Canada, but not UK sites, or WeWork’s franchisees in Europe, the Middle East, Africa and Australia.

The statement reassured users of WeWork spaces that sites will remain “open and operational”.

Lease Rejection Plan

WeWork is also working on a “lease rejection plan” where it will reject the leases of certain locations. The statement noted that these sites are “largely non-operational” and all affected members have received advanced notice. 

A significant proportion of WeWork’s financial stakeholders support a restructuring agreement and have agreed to “expedite the restructuring process” by converting their secured notes into equity.

At the start of November, shares in WeWork fell by 32 per cent after the Wall Street Journal first shared the rumours of bankruptcy.  According to Reuters, WeWork shares have fallen about 98.5 per cent so far this year.

David Tolley, CEO of WeWork 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 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.

He continued: “We remain committed to investing in our products, services, and world-class team of employees to support our community.” 

Picture: a photograph of an open laptop showing an image of an office space, with a mug next to it with the WeWork logo. Image Credit: Unsplash

Article written by Ella Tansley | Published 07 November 2023

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