WeWork files for bankruptcy amid office market downturn

  • 📰 FinancialReview
  • ⏱ Reading Time:
  • 36 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 18%
  • Publisher: 90%

United States News News

United States United States Latest News,United States United States Headlines

The flexible-office-space venture, valued at $US47 billion at its peak, is facing the consequences of excessive expansion that left it with unprofitable leases.

| WeWork, the SoftBank Group-backed startup whose meteoric rise and fall reshaped the office sector globally, sought US bankruptcy protection on Monday , after its bets on companies using more of its office-sharing space soured.

“WeWork could use provisions of the US bankruptcy code to rid itself of onerous leases,” law firm Cadwalader, Wickersham & Taft LLP said in a note to landlords on its website in August. Some landlords are bracing for a significant impact.WeWork grew to be the most valuable US startup, worth $US47 billion. It attracted investments from blue-chip investors, including SoftBank and venture capital firm Benchmark, as well as the backing of major Wall Street Banks, including JPMorgan Chase.

WeWork managed to amend 590 leases, saving about $US12.7 billion in fixed lease payments. But this was not enough to compensate for the fallout from the COVID-19 pandemic, which kept office workers at home.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 2. in US
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

United States United States Latest News, United States United States Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

WeWork files for bankruptcy amid office market downturnThe flexible-office-space venture, valued at $US47 billion at its peak, is facing the consequences of excessive expansion that left it with unprofitable leases.
Source: FinancialReview - 🏆 2. / 90 Read more »