WeWork applied for bankruptcy protection, was once valued at $47 billion
[ad_1]
Global coworking company WeWork, once one of the biggest companies on Wall Street, has applied for bankruptcy protection in the US. Coworking refers to offices for multiple companies in one location. WeWork is one of the leading coworking companies in the world.
Once the market valuation of this company was about to reach 50 billion dollars. WeWork has made this application under Chapter 11 of bankruptcy protection. Along with this, the company has started a comprehensive restructuring process to reduce its debt and clean up its books.
New York Exchange-listed WeWork has said its centers outside the US and Canada will not be part of the process. SoftBank-backed WeWork Inc. once had a market valuation of $47 billion. The company has suffered a net loss of $696 million in the first half of the current year.
“Now is the time to prepare for the future and aggressively resolve legacy lease issues and clean up our balance sheet,” WeWork CEO David Tolli said in a statement. ‘
WeWork was under threat of bankruptcy for a long time. In August, the New York-based company had expressed doubts about its ability to stay in business. WeWork India is owned by Bengaluru-based real estate company Embassy Group. He has said that developments at the global level will not affect Indian business.
WeWork India has more than 50 centers across the country. Embassy Group holds 73 percent stake in WeWork India. The remaining 27 percent stake is with WeWork Global. WeWork Global invested $100 million in WeWork India in June 2021.
WeWork said in the bankruptcy filing that it wants to cancel leases at certain destinations that are no longer of operational value to it. The company said on Monday that advance notice regarding this has been sent to all the affected members.
Disclaimer: IndiaTheNews has not edited this news. This news has been published from PTI-language feed.
[ad_2]
Source link
