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WeWorkis on the verge of file away for Chapter 11 bankruptcy in New Jersey , harmonize to sources name by TheWall Street Journal .
If WeWork does indeed file , it should n’t come as a cushion to close follower of the flexile workspace supplier . WeWork warned in August in itssecond - quarter earningsthat“substantial doubtfulness be about the company ’s ability to continue as a going concern . ”
The companionship has face a routine of challenge for twelvemonth as demand for its co - working spaces has steadily declined over time . Those worry heighten during the COVID pandemic whencompanies abandoned post space and employees begin work remotely . Even as some troupe have return to the business office , the appetency for WeWork space did n’t rebound to those pre - pandemic days .
in the beginning this calendar month , WeWork overleap sake payments to its bondholders , and was granted 30 day to come up with those payments , according toa security filing . On October 30 , WeWork said it had begun discussions with “ certain stakeholders in its capital letter structure ” such as SoftBank and Goldman Sachs about better its Libra the Scales sheet as it take on steps “ to rationalize its real estate footprint . ”
In August , the 13 - year - old fellowship herald a last loss of $ 397 million for the second quarter on tax income of $ 877 million . While revenue was up 4 % yr - over - year , WeWork interim CEO David Tolley observe in a statement at the time : “ extra supply in commercial material estate , increase challenger in flexible quad and macroeconomic excitability motor higher member churn and softer demand than we anticipate , leave in a flimsy downslope in memberships . ”
The ship’s company ’s broth wasdown over 47 % after - hours today , trading at just $ 1.21 and stumble a new 52 - workweek first . This give the company a grocery store cap of just $ 121 million , a stark contrast to the $ 47 billion valuation it reached after raising $ 1 billion in its SoftBank - led Series H rung in January 2019 .
WeWork fires back at competitor Codi with cease and desist adopt ‘ WeWont ’ cause
