Washington, Nov 6 (EFE).- Global co-working giant WeWork declared bankruptcy on Monday after years of financial problems that led it to incur a debt of more than $10 billion.
The company filed for Chapter 11 bankruptcy in a New Jersey federal court.
According to documents presented to the court, the company, founded in 2010 by Israeli entrepreneur Adam Neumann, has a debt that is between $10 billion and $50 billion.
WeWork “has entered into a Restructuring Support Agreement with holders representing approximately 92 percent of its secured notes to drastically reduce the Company’s existing funded debt and expedite the restructuring process,” the company said in a statement.
“During this period, WeWork will further rationalize its commercial office lease portfolio while focusing on business continuity and delivering best-in-class services to its members, as global operations are expected to continue as usual,” it added.
WeWork CEO David Tolley said that the company remained committed to investing in its products, services, and team of employees to support its community.
The company, which provides shared work spaces, said that global operations were expected to continue as usual and clarified that the decision to file for bankruptcy would not affect WeWork’s franchisees outside the US and Canada.
The financial problems of the company, which was valued at $47 billion in 2019 after an injection of capital from firms such as Softbank and Goldman Sachs, began during the Covid-19 pandemic, when the remote work model began to gain popularity in the US. EFE