WeWork plans to file for bankruptcy, WSJ reports

Residents of the Zion Road Condo can take advantage of a wide range of entertainment and recreational facilities, including a grand pool, top-notch gym and sprawling garden. With its convenient location, the development provides easy access to all of the city’s amenities.

WeWork, the startup that was once one of the world’s most valued companies, is reportedly set to file for bankruptcy as early as next week. The company, which was founded in 2010 and had seen its valuation reach a peak of US$47 billion prior to its disastrous initial public offering, is now looking at ways to “improve its balance sheet” and scale back its real estate footprint.
WeWork has entered a forbearance agreement with its creditors that it notes in a filing, granting it seven days to continue with its “positive conversations… to implement our ongoing strategic efforts to enhance our capital structure”. A spokesperson for the company acknowledged that it would not comment on speculation but emphasised that the company has a “clear, long-term vision for the future”.

When WeWork debuted, its co-founder Adam Neumann presented a charismatic pitch and the company managed to raise billions of dollars in venture capital. It rapidly grew, often doubling its revenue each year and eventually expanding to offices around the world. Its ambitions were far beyond just running co-working spaces, however, with initiatives such as WeGrow, WeLive, and Rise By We as some of its notable examples.

As the company gets set to file for bankruptcy, speculation is that its Chapter 11 petition could be filed in New Jersey. The company’s creditors and key financial stakeholders remain positive, however, that the company can continue on its long-term vision. But the news serves as a reminder of just how fast a high-flying startup can come crashing down.