WeWork Declares Bankruptcy in the United States

Co-working company WeWork has filed for bankruptcy in the US after facing years of difficulty. The company reported liabilities of up to $50 billion, giving it legal protection from its creditors and more room for negotiations with landlords. WeWork, once considered the future of office spaces with its flexible rental terms, relied heavily on rapid growth to mask its high costs. The company's reputation took a hit in 2019 when its attempt to raise money in a public listing failed, leading to the removal of co-founder Adam Neumann. The COVID-19 pandemic further worsened WeWork's situation as office closures forced people to work from home. The company lost over $1 billion in the first half of 2020 due to operating expenses and other costs. As a result, WeWork has been selling parts of its business, closing locations, renegotiating terms, and not making loan payments. Founded in 2010, WeWork claimed to have over 700 locations worldwide and roughly 730,000 members at its peak in early 2019 when it was privately valued at $47 billion.