WeWork, Once Valued at $47 billion, Plans for Bankruptcy Filing Amidst Falling Stock Prices and Missed Payments

Bankruptcy filing could result as early as next week for the coworking space provider, with market capitalization plummeting to $60 million; key stakeholders granted a seven-day extension to avoid triggering default in response to missed bondholder payments.

WeWork, a coworking space provider, is preparing a bankruptcy filing that could come as early as next week. Founded in 2010, the company reached a peak valuation of $47 billion in January 2019, but has consistently lost money over the years.
WeWork's stock fell by about 50% recently, bringing its market capitalization down to $60 million. This followed the company's failure to make timely interest payments to its bondholders, leading to a grace period for negotiation to avoid default.
Despite having high-profile customers like IBM and Microsoft, WeWork has struggled to turn a profit. In 2022, it reported a net loss of $2.3 billion. This loss was slightly reduced to $696 million in the first six months of 2023.
After a controversial attempt to go public in 2019 and the subsequent departure of founder Adam Neumann, WeWork eventually went public in October 2021 by merging with a special purpose acquisition company, valuing the company at $9 billion.
WeWork's current situation is said to be due to long-term leases and hefty losses. The company estimated that it had $10 billion in lease obligations due from the second half of 2023 to the end of 2027, and an additional $15 billion starting in 2028.