The WeWork bankruptcy filing marks a staggering new low for the company that formerly operated on subleasing office space to workers in Silicon Valley
A few months ago WeWork said it would be exiting some of its locations. On its website, it lists 660 locations in 37 countries, down from the 764 locations in 38 countries it had about two years earlier. The company was renting more space than any other company in the month of June. WeWork franchises outside the United States and Canada won’t be affected by Monday’s actions.
WeWork has seen its share value fall 98 percent since the beginning of the year, and the company is now worth less than $45 million. At its peak the company was worth $47 billion.
In its bankruptcy petition, the company listed about $15 billion in assets and more than $18 billion in debt. It also has around $100 million in unpaid rent.
The bankruptcy filing marks a staggering new low for the company, which at its heyday won billions of dollars in funding from deep-pocketed investors for putting a Silicon Valley spin on the less-flashy business of subleasing office space to workers.
Adam Neumann and WeWork: Letting Out Office Space When People Can’t Work at Home – A Bad Time for Companies Who Are Trying to Lose Their Office Spaces
Adam Neumann started WeWork in 2010. It expanded at a breakneck pace and attempted to revolutionize the way people work, a lofty goal that was never fully realized.
WeWork spent gobs of money remodeling office spaces around the world on long-term leases, with the goal of making a profit on very short-term subleases.
It scrambled to renegotiate lease terms with landlords. But it faced increased competition in the world of short-term office space. And with many office workers choosing to work from home, the company failed to regain its footing.
He cut costs and laid off employees as he steered WeWork’s growth, an especially bad time for companies that want to lease out office space.