WeWork, Once America’s Most Valuable Startup, Files for Bankruptcy 📉🇺🇸

WeWork, the high-profile startup backed by SoftBank Group, has filed for bankruptcy in the United States as its ambitious expansion plans turned sour, necessitating a reevaluation of costly leases. Approximately 92% of the company’s lenders have agreed to convert their secured debt into equity, eliminating around $3 billion in debt. WeWork believes this restructuring will allow it to maintain normal operations. The company, with locations in 777 sites globally, has struggled to achieve profitability, with expensive leases and a shift towards remote work contributing to financial challenges. Under its founder Adam Neumann, WeWork once held a valuation of $47 billion but faced a series of setbacks, including Neumann’s ouster and the derailment of an initial public offering in 2019. SoftBank, its major investor, was compelled to double down on its support, and the company’s journey to recovery has been marked by challenges, leading to this bankruptcy filing.