Coworking giant WeWork, which has been in dire financial straits for years, announced it has filed for bankruptcy in an attempt to negotiate debt relief. The company said this measure will affect operations in the United States and Canada, but “global operations are expected to continue as usual.”
“It is time for us to move forward into the future by aggressively addressing our legacy leases and significantly improving our balance sheet,” CEO David Tolley said in a statement.
“We have defined a new category of work and these steps will allow us to remain a global leader in flexible working.” WeWork warned the US Securities Exchange Commission (SEC) in early August that it feared for its survival: “There are significant doubts about the company’s ability to continue as a going concern.” According to the company, the reason: financial losses, liquidity needs, and a decline in the number of tenants. It had explained that it lost billions of dollars in the first six months of 2023, due to a decrease in demand linked to poor economic conditions.
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