Wednesday

Billion

<div class="textg" style="text-align: justify; font-weight: lighter; line-height: 1.3em; font-size: 15px; border-radius: 3px; color: #80909a; padding: 10px; background-color: #F4F6F9; margin-bottom: 15px;">
 Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our&nbsp;<a href="https://tokenist.com/terms-of-service/" style="text-decoration:underline;color:#3c7b7b" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">website policy</a>&nbsp;prior to making financial decisions.
</div>
<p class="has-drop-cap">WeWork (NYSE: $WE) shares plummeted 40% in the Wednesday premarket on the news that the company plans to file for bankruptcy protection next week, <a aria-label="as reported by Wall Street Journal (opens in a new tab)" href="https://www.wsj.com/articles/wework-plans-to-file-for-bankruptcy-as-early-as-next-week-1fdcb6a5" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">as reported by the Wall Street Journal</a> (WSJ). Amidst mounting losses and an accumulating debt pile, the company’s stock nosedived almost 98% over the past year.&nbsp;</p>
<h3 id="why-is-wework-filing-for-bankruptcy-protection">Why is WeWork Filing for Bankruptcy Protection?</h3>
<p>Coworking space provider WeWork is set to file for bankruptcy next week, according to a report by Wall Street Journal. The news is yet to be confirmed by WeWork officially.</p>
<p>Per WSJ, the company’s move comes as it struggles to reduce its hefty debt pile and address mounting losses. WeWork’s shares fell about 40% Wednesday premarket and more than 97% over the past year.&nbsp;</p>
<p>Earlier on Tuesday, the New York-based firm said it had agreed with creditors to temporarily postpone payments for some of its debt as the grace period nears the deadline. The company <a aria-label="missed interest payments (opens in a new tab)" href="https://www.nytimes.com/2023/10/02/business/wework-misses-interest-payments.html" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">missed interest payments</a> it owed to its bondholders last month, starting a 30-day grace period. Failing to make the payments before the grace period ends would be considered an event of default.&nbsp;</p>
<p>WeWork had a net long-term debt of $2.9 billion as of June and over $13 billion in long-term leases. The growing debt pile comes when spiraling borrowing costs particularly damage the commercial real state sector.&nbsp;</p>
<div class="cta-referral"><img src="https://tokenist.com/wp-content/themes/thetokenist/assets/img/del/cta-referral-1.png" alt="" class="cta-referral__img" loading="lazy" decoding="async">
 <div class="cta-referral__text">
  <p>Join our&nbsp;<a href="https://t.me/thetokenist" target="_blank" rel="noopener noreferrer nofollow">Telegram group</a>&nbsp;and never miss a breaking digital asset story.</p>
 </div>
</div>
<h3 id="from-47-billion-to-nearly-worthless">From $47 Billion to Nearly Worthless</h3>
<p>WeWork’s plans to file for bankruptcy protection mark a remarkable decline for the company that reached a valuation of a whipping $47 billion in 2019. Now, the company’s market value sits at a mere $121 million.&nbsp;</p>
<p>The SoftBank-backed firm has been grappling with challenges since its plans to launch an initial public offering (IPO) in 2019 went south amid investors’ skepticism over its business model, which involves taking long-term leases and renting them for the near term.</p>
<p>In contrast to its initial plans, <a href="https://www.nytimes.com/2021/10/21/business/wework-trading-debut.html" target="_blank" aria-label=" (opens in a new tab)" rel="noopener noreferrer nofollow" class="deco-link">WeWork went public in 2021</a> at a significantly lower valuation of roughly $9.5 billion. Its key investor, Japanese investment giant SoftBank, poured tens of billions of dollars to support the startup, but that did not prevent the company from losing more money.&nbsp;</p>
<p>To make things even worse, WeWork’s former CEO Sandeep Mathrani, brought to help the company stage a turnaround, <a aria-label="abruptly left the company (opens in a new tab)" href="https://www.reuters.com/business/wework-ceo-mathrani-step-down-2023-05-16/" target="_blank" rel="noopener noreferrer nofollow" class="deco-link">abruptly left the company</a> after multiple disputes with SoftBank.&nbsp;</p> <iframe src="https://tokenist.substack.com/embed" width="100%" height="320" style="border:1px solid #EEE; background:white;" frameborder="0" scrolling="no"></iframe>
<p><em><strong>Considering current challenges, what do you think will ultimately happen to WeWork if it goes into administration? Let us know in the comments below.&nbsp;</strong></em></p>
<p>The post <a rel="noopener noreferrer nofollow" href="https://tokenist.com/wework-down-97-over-a-year-as-firm-reportedly-heading-for-bankruptcy/">WeWork Down 97% Over a Year as Firm Reportedly Heading for Bankruptcy</a> appeared first on <a rel="noopener noreferrer nofollow" href="https://tokenist.com">Tokenist</a>.</p>

WeWork Down 97% Over a Year as Firm Reportedly Heading for Bankruptcy

Table of Contents

Tokenist

Other articles published on Nov 1, 2023

Crypto Trading Giants in Talks to Boost Liquidity for BlackRock’s Bitcoin ETF

A Beginner’s Guide to AI Trading: Learn How It Can Help Traders

You Won’t Believe How Much Crypto Whistleblowers Made From The CFTC

XRP News: John Deaton Requests Congress To Subpoena US SEC And Gary Gensler

Analyst says Bitcoin ETF approval may be coming within days

SEC Accused of ‘Breaking the Law’: Congress and GAO Challenge SEC’s Controversial Crypto Accounti...

Join our free newsletter for daily crypto updates!