WeWork to file for bankruptcy as early as next week: report

WeWork, a company that offers flexible workspaces as an alternative to traditional office environments, is expected to file for bankruptcy as early as next week, the Wall Street Journal reported, citing sources familiar with the situation.

Ounce worth $47 billionThe New York-based company has been struggling since 2019, when its plan to go public was shelved.

Investors were skeptical after seeing heavy losses and learning about WeWork’s business model, which involved acquiring long-term leases and leasing them short-term, according to Reuters.

The company is reportedly considering filing for Chapter 11 bankruptcy in New Jersey.

Shares of the company fell 30% in extended trading after the news broke on Tuesday afternoon.

We are working issued a statement in August admitted there was “substantial doubt” they would be able to stay in business and noted a “slight decline in membership” as well as “increasing competition” with commercial property on offer.

The statement revealed a net loss of $696 million from January to June this year, which was actually significantly less than the $1.14 billion in losses reported for the same period a year earlier.

Three directors on the company’s board resigned in August after a disagreement over WeWork’s strategic direction, according to a securities filing.

Things developed earlier this month when the company have announced that they have seen an increase in demand for space in Londonwith staff returning to their desks in September after the summer holidays.

All-access bookings at 55 locations across London were reported to be 16.9% higher in September than a year earlier, while on-demand bookings were up 33.6% and meeting room bookings were up 10% over the same period.

WeWork has yet to comment on reports of its potential bankruptcy.

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