As predicted last week, co-working space rental company WeWork has filed for Chapter 11 bankruptcy protection for its businesses in the United States and Canada. It also revealed that the company is carrying liabilities ranging from $10 billion to $40 billion.
In an official statement issued by WeWork this morning, the company's CEO David Tolley said they are still committed to investing in products, services and in staff with the restructuring to be done along with the process of rationalizing the rented portfolio. WeWork will operate as normal worldwide during this time.
The company was once valued at $47 billion and received a major investment from Softbank. Poor management, the pandemic and the lack of demand for physical workspaces have affected the company's operations. This led to the company's shares plunging as low as 10 cents at one point.
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