WeWork has sought Chapter 11 bankruptcy protection in New Jersey federal court, reaching agreements with most secured note holders and planning to reduce "non-operational" leases.
WeWork's bankruptcy filing only applies to its U.S. and Canada locations. Company reported liabilities of $10 billion to $50 billion, as per the bankruptcy filing.
WeWork witnessed a significant corporate collapse in recent U.S. history. Valued at $47 billion in 2019, its attempt to go public five years ago ended in failure.
WeWork went public in 2021 through a special purpose acquisition company but witnessed a 98% drop in its value. In mid-August, the company executed a 1-for-40 reverse stock split to increase share value.
WeWork shares had fallen to a low of about 10 cents and were trading at about 83 cents before the stock was halted Monday.
WeWork claimed to be renegotiating leases and expressed its commitment to continued operations. The company's long-term lease obligations were approximately $16 billion, per securities filings.
As of June 30, WeWork had a global presence with 777 locations in 39 countries, and its occupancy rates were comparable to 2019 levels. However, the company continued to operate at a loss.