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## WeWork Files for Bankruptcy in the US

By Annabelle Liang and Natalie Sherman, Business reporters

Published: 7 November 2023, 02:39 GMT (Updated 18 minutes ago)


**WeWork** has officially filed for bankruptcy in the United States, marking the culmination of years of struggle for the co-working company. The bankruptcy filing, made in the New Jersey federal court, reveals that WeWork has liabilities ranging from $10 billion to $50 billion (£40.5 billion).

This move grants WeWork legal protection against its creditors and provides the company with additional negotiation tools for its dealings with landlords. WeWork was once regarded as the future of the office, known for offering flexible rental terms to start-ups and freelancers. However, the company relied heavily on rapid expansion to conceal its substantial costs.

“WeWork Inc. and certain of its entities filed for protection under Chapter 11 of the US Bankruptcy Code and intend to file recognition proceedings in Canada,” stated a WeWork representative.

David Tolley, the Chief Executive Officer of WeWork, expressed his deep gratitude for the support of the company’s financial stakeholders in their efforts to strengthen the capital structure. He emphasized the commitment to investing in their products, services, and the exceptional team of employees that support their community.

The demand for WeWork’s co-sharing office spaces suffered a significant blow after a disastrous attempt to raise funds through a public listing in 2019. This incident tarnished their reputation and ultimately resulted in the ousting of co-founder Adam Neumann. Subsequently, the COVID-19 pandemic further hampered business as office closures and remote work became the norm worldwide.

During the first half of this year, WeWork incurred losses exceeding $1 billion due to the high operational expenses of its offices and various other costs. Desperate to salvage its financial situation, the company has been aggressively selling off parts of its business, closing locations, and renegotiating long-term lease agreements and debts.

As discussions intensified, WeWork informed investors last month that it could no longer make loan repayments. Founded in 2010, WeWork claimed to have more than 700 locations globally with approximately 730,000 members as of June this year. At its peak in early 2019, investors had privately valued the company at an astonishing $47 billion.

The situation faced by WeWork highlights the challenging landscape for businesses in the co-working industry. However, there might be a way to unravel complex legal language highlighted in the bankruptcy filing using the AI legalese decoder. This cutting-edge tool can help individuals and legal professionals understand and interpret complicated legal jargon quickly and accurately, potentially aiding in the analysis and resolution of WeWork’s bankruptcy proceedings.

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