The American company WeWork, which had a reputation as one of the most expensive startups, plans to file for bankruptcy next week. This is reported by Bloomberg with reference to The Wall Street Journal.
WeWork is currently in talks with creditors to “improve its balance sheet” and is taking steps to rationalize the use of its real estate. In addition, the company has entered into a deferred payment agreement with its creditors. But it expires in seven days.
A company spokesperson said that it “does not comment on speculation”. However, he added that the postponement agreement will give time to continue negotiations with key stakeholders. He also added that WeWork has a “clear, long-term vision for the future.”
WeWork was founded in 2010. It provides a shared workspace for freelancers, small businesses, and large corporations.
WeWork was co-founded by billionaire Adam Neumann. The company managed to raise billions of dollars and demonstrate steady growth. Its value at its peak was estimated at $47 billion.
However, the situation changed dramatically after the company’s IPO failed. Another major challenge was the pandemic, when employees started working remotely from home instead of in offices.