WeWork said it had entered into a restructuring support agreement with stakeholders to 'drastically reduce' the company’s debt. Photograph: APOffice sharing company WeWork has filed for bankruptcy protection in the United States.
WeWork is requesting the “ability to reject the leases of certain locations”, which the company says are largely non-operational, as part of the filing. In a prepared statement regarding its filing for Chapter 11 bankruptcy protection, chief executive David Tolley said: “Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet.
In August, the New York company – which was once valued as high as $47 billion – sounded the alarm over its ability to remain in business which it saw was contingent upon improving its liquidity and profitability overall in the next year.