WeWork Expected to File for Bankruptcy According to Report

WeWork Expected to File for Bankruptcy According to Report

WeWork, the one-time startup once valued at $47 billion, is poised to file for bankruptcy, according to a report in the Wall Street Journal.

The company that built a network of flexible-office spaces was designed to be the future of the office.

New York-based WeWork is considering filing a Chapter 11 petition in New Jersey, the sources told the WSJ.

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“WeWork missed interest payments owed to its bondholders on Oct. 2, kicking off a 30-day grace period in which it needs to make the payments. Failing to do so would be considered an event of default. On Tuesday, the company said it has struck an agreement with the bondholders to allow it another seven days to negotiate with the stakeholders before a default is triggered,” reported WSJ. 

 

The company was co-founded by Adam Neumann — who became a functional poster child for tech unicorns gone bad. Time magazine named Neumann as one of the 100 most influential people of 2018.