WeWork, the American real estate company known for its coworking spaces, has declared bankruptcy this Tuesday when not being able to face a registered debt of almost 19 million dollars, he affirms Bloomberg. The startup founded by Adam Neumann will, however, maintain its activity in countries like Spain.
The company, specifically, has filed for Chapter 11 of the United States Bankruptcy Law in New Jersey, which allows companies that declare bankruptcy to continue their activity if possible. The bankruptcy comes just four years after the company was valued at almost $50 billion. Currently, its value has fallen by 98%.
WeWork, we reiterate, It has a debt of 18,656 million dollars since June last year, and has listed assets worth $15 billion. The company, however, has highlighted in a statement that it has reached a debt restructuring agreement that represents approximately 92% of its promissory notes.
The bankruptcy, furthermore, only affects the United States and Canada. The company has confirmed in an internal email to which it has had access ElDiario.es that In Spain, activity will continue as before. “We have made the proactive decision to begin a strategic reorganization process to better position the company for future success. Keep in mind that this process is not going to happen in your country and we do not expect that there will be changes in the operations or day-to-day life of WeWork there,” he highlighted. Therefore, the offices that it has distributed in both Madrid and Barcelona will remain open.
WeWork: from unicorn to bankruptcy
WeWork has always been involved in controversy due to the shocking decisions of its founder, Adam Neumannwho ignored the million-dollar losses, claiming that the objective of his company was to grow in the first place.
In 2019, the intention to go public failed to the concern of investors. Softbank was one of them; investing up to 10 billion dollars and later, trying to rescue the company with actions such as the dismissal of Neumann.
WeWork, however, had another problem: the arrival of the pandemic. In 2020, the company plummeted due to the rise of teleworking and confinement, having practically empty coworking spaces for months. Since then, in fact, the company has done nothing but report million-dollar losses. From 3,129 million dollars in 2020; in 2021, 4,439 million dollars; and in 2022, 2,034 million.