Updated Nov 6, 2023 - Economy

Stunning fall: WeWork files for bankruptcy

An illustration of a cracked WeWork coffee cup leaking

Illustration: Sarah Grillo/Axios

WeWork filed for Chapter 11 bankruptcy protection on Monday.

What happened: The co-working space operator failed to make required interest payments to bondholders last month, but then negotiated a pair of extensions that pushed the deadline to today.

  • Shares were halted at market open today and didn't trade.
  • CEO David Tolley warned in August that substantial doubt exists about WeWork's ability to continue as an ongoing concern.

By the numbers: WeWork once was valued at $47 billion by private market investors like SoftBank, and still was worth $9 billion when it agreed to go public two years ago via a blank-check company.

  • Its market cap was south of $45 million on Friday, as shares closed at just 84 cents apiece.
  • WeWork reported 777 locations in 39 counties, including 229 in the U.S., as of a June disclosure.

Details: The company has a restructuring support agreement (RSA) with 92% of its secured note holders, which will expedite the restructuring process, per a WeWork statement. The deal will "drastically" reduce the company's debt.

  • "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, per the statement.
  • WeWork's locations outside of the U.S. and Canada are not part of this process.

Go deeper: The fall and rise and fall of WeWork

Editor's note: This article has been updated with new details throughout.

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