2023-11-07 17:40:00
Hoy 14:40
WeWork Inc. went bankruptthus capping a tumultuous period in which the once successful startup faced a failed initial public offeringat the closing covid-19to a fusion of blank check and to the slow back-to-office trends.
The company, which at its most successful in 2019 It reached a valuation of US$47,000 milliondeclared on Monday US$19 billion in liabilities and US$15 billion in assets in your application for bankruptcy protection in New Jersey. By filing for Chapter 11 of the United States bankruptcy law, WeWork will be able to continue operating while it resolves terms for paying its creditors.
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WeWork filed for bankruptcy following reaching a tentative restructuring agreement with its former backer SoftBank Group Corp. and existing creditors to cut more than $3 billion of debt and eliminate most of their equity. Also will try to revoke more than 60 leases in North America and will use the judicial process to renegotiate other contracts, the CEO said, David Tolleyin court documents.
WeWork’s real estate footprint included 777 facilities in 39 countries as of June 30with occupancy close to 2019 levels. But the company is still not profitable.
“WeWork is requesting the power to revoke the leases of certain locations, which are largely non-operational, and all affected members have received advance notice”, the company reported in a statement.
A long saga
The bankruptcy of WeWork It is the culmination of a long saga for the New York companywhose sudden rise and precipitous fall They have captivated both Wall Street and Silicon Valley. It might be said that the ruin of the company started in 2019. In a matter of months, the company went from planning an IPO to laying off thousands of people and getting a multimillion-dollar bailout.
WeWork was never a conventional business: for a substantial part of its existence, operated with the stated mission of “elevating the consciousness of the world”. The spiritual ethos that founder Adam Neumann and his wife, executive and co-founder Rebekah Neumann, encouraged at times made the company seem more like a religion than a startup.
The company eventually went public in 2021 through a combination with a special purpose acquisition company, two years following its initially planned IPO. But that didn’t stop WeWork from losing money.
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Although WeWork reached a broad debt restructuring agreement in early 2023, He quickly fell into trouble once more. In August, he declared that there were “substantial doubts” on its ability to continue operating. Weeks later, reported that it would renegotiate almost all of its leases and withdraw from “underperforming” locations.
This time, it reached a restructuring agreement with creditors that represent approximately 92% of its guaranteed bonds and said it would rationalize its office leasing portfolio, according to the company statement.
Translated by Paulina Munita.
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