WeWork to file for bankruptcy after once being valued at $47B: report

Flexible workspace provider WeWork plans to file for bankruptcy as early as next week, a source familiar with the matter said on Tuesday, in a stunning reversal of fortune for a company that was once privately valued at $47 billion.

Shares of the company fell 30% in extended trading after the Wall Street Journal first reported the news.

They have fallen roughly 96% this year.

New York-based WeWork is considering filing a Chapter 11 petition in New Jersey, the WSJ reported, citing people familiar with the matter.

WeWork did not immediately respond to a Reuters request for comment.

Earlier on Tuesday, the debt-laden firm decided to withhold interest payment of about $6.4 million.

The company has been in turmoil ever since its plans to go public in 2019 imploded following investors skepticism over its business model of taking long-term leases and renting them for the short term and on worries over its hefty losses.

WeWork’s woes did not abate in subsequent years.

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