WeWork files for bankruptcy: Company’s debt ranges from $10,000 to $50,000 million

WeWork files for bankruptcy (REUTERS)

American joint venture WeWork It was announced on Monday BankruptcyAfter years of financial problems led her Over $10 billion in debt.

In a statement, the company announced its decision this Monday Chapter 11 Bankruptcy Act America Before a court of law New Jersey.

According to documents submitted to the court, the company was founded in 2010 by an Israeli businessman Adam NewmanLoans range from 10,000 to 50,000 million dollars.

WeWork describes it Already entered into a debt restructuring agreement According to the report, it will focus on “the continuity of its business,” including reducing its commercial lease portfolio, with creditors securing more than 92% of its notes.

“We are committed to investing in our products, services and our team of employees,” said the company’s CEO. David DolleyIn writing.

The company, which offers shared workspaces, clarified its decision to file for bankruptcy, saying it hopes to continue its operations globally. This does not affect WeWork owners outside of the US and Canada.

The joint venture’s debt ranges from $10,000 to $50,000 million (REUTERS/FILE)

Financial difficulties of the company, it was assessed 47 billion dollars In 2019 after the infusion of private capital from companies like Softbank One Goldman SachsWhen the remote work model began to gain popularity in the United States, it began as a result of the coronavirus pandemic.

See also  Health says two new deaths from COVID-19 and 416 people hospitalized

“The company faced turbulence from its plans to go public in 2019, following investors’ skepticism about its shift from long-term rentals to short-term rentals and concerns about its high losses,” the company said last week. Company Reuters In the message preview.

WeWork’s troubles haven’t abated in the years that followed. It finally managed to go public in 2021 at a very low valuation. Its main sponsor, Japanese conglomerate SoftBank, invested billions to shore up the startup, but the company continues to lose money,” it said.

WeWork was valued at $47 billion in 2019 after an injection of private capital (REUTERS/FILE).

WeWork was founded in August “substantial doubts” A number of senior executives, including CEO Sandeep Madrani, have left the company this year.

The company later said it would focus on reducing rental costs, negotiating favorable rents, increasing revenue and raising cash over the next year.

“We will continue to invest in our product offering while taking steps to reduce rental and leasing costs. “Our members are our priority, and regardless of any short-term actions we take, we will continue to work and serve them for the long term,” a WeWork representative said in a statement.

(with information from EFE)

Eden Hayes

"Wannabe gamer. Subtly charming beer buff. General pop culture trailblazer. Incurable thinker. Certified analyst."

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top