The company filed for Chapter 11 bankruptcy in a New Jersey federal court, citing liabilities ranging from $10 billion to $50 billion. This move provides WeWork with legal protection from creditors and facilitates negotiations with landlords.
Once viewed as the future of office space, WeWork expanded rapidly but faced significant costs that it struggled to cover. While the bankruptcy filing offers some relief, WeWork clarified that its locations outside of the US and Canada would remain unaffected. The company has been working to restructure and offload certain assets as it grapples with its financial challenges. WeWork shares have lost nearly all their value this year, down approximately 99%.