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WeWork, the office-sharing company once valued at $47 billion, has officially filed for Chapter 11 bankruptcy protection. The filing was revealed today in court documents in Delaware.
WeWork has been struggling for months as it has been unable to find a satisfactory buyout or merger partner. The company failed to complete its initial public offering in September 2019, and has since then been unable to secure a financial bailout. Its banking consortium is reportedly pushing for the company to acquire financing from SoftBank, its largest investor, a claim that SoftBank has denied.
The bankruptcy filing will provide WeWork with some short-term protection from creditors, and will allow the company to restructure its debt. WeWork has stated that it will use the filing as a means to reduce its current liabilities, increase its financial flexibility, and pursue a more long-term objective.
WeWork will continue to operate, and its filing indicates that co-founder Adam Neumann will be stepping down from his role within the company. WeWork also plans to cut back more than 2,000 of its 7,000 jobs as part of its restructuring plan.