WeWork is expected to file for Chapter 11 bankruptcy protection possibly as early as next week, according to a Tuesday report from The Wall Street Journal.
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A WeWork spokesperson reached by Bisnow Tuesday afternoon declined to comment on what they called speculation.
It is quite a turn of events for a company that at its peak was valued at $47B, but the news isn't unexpected.
WeWork posted a $397M loss in the second quarter. In an August news release, the company expressed "substantial doubt" about its ability to remain in business. That same month, the company was reportedly assembling a team of restructuring experts to help keep it out of bankruptcy.
The last two months have been tumultuous, as WeWork weathered the departure of the company's chief operating officer and president, missed interest payments on debts and scrambled to renegotiate almost all of its leases.
In early October, the clock began ticking on a 30-day grace period WeWork had to make a more than $95M missed interest payment to bondholders. The grace period was set to expire Tuesday, but the company got a seven-day extension, according to a stock exchange notice.
In a statement to Bisnow Tuesday about the forbearance agreement WeWork arranged to make the payment, a WeWork rep said that the company has "a clear, long-term vision for the future and over the past few months we have taken a series of decisive actions to improve our business."
"This forbearance agreement provides time to continue these positive conversations as we continue to engage with them to implement our ongoing strategic efforts to enhance our capital structure," the spokesperson said.
The once-formidable WeWork maintained large office presences in major cities around the world before its fortunes turned following a failed initial public offering in 2019. The pandemic further hobbled the company, as stay-at-home and social distancing mandates dampened enthusiasm for coworking spaces.
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