WeWork has filed for Chapter 11 bankruptcy in the United States, as reported earlier. This bankruptcy process only affects WeWork’s operations in the United States and Canada, while its branches worldwide will not be involved.
By entering this liquidation process, WeWork can negotiate or cancel leases with space owners. Currently, several leased spaces are not operational, and all space owners have been notified of this process beforehand.
WeWork CEO, David Tolley, confirms that the WeWork community remains strong, with over 500,000 members. The company still has over 2,500 employees, partners, and a robust technology infrastructure to continue its business as usual.
WeWork is one of the most prominent co-working space rental startups, but it has faced challenges in both management and finance. In 2019, co-founder and CEO at that time, Adam Neumann, resigned due to these issues. The company appointed a new CEO, but then in 2020, the COVID-19 pandemic hit, impacting revenue growth due to reduced office space demand.
In the latest quarterly report, the management stated that the company still faces financial challenges and may encounter difficulties if it does not improve its liquidity. Hence, this has led to the decision to file for bankruptcy.
TLDR: WeWork has filed for Chapter 11 bankruptcy in the US, impacting its operations in the US and Canada. However, its branches worldwide are unaffected. The company aims to negotiate or cancel leases with space owners to address its financial challenges. Despite this, WeWork reassures its community of over 500,000 members and has over 2,500 employees and partners to continue its operations as usual.