Flexible-office-space firm WeWork has filed for Chapter 11 bankruptcy protection, a stunning change in fortune for the once high-flying startup co-founded by Adam Neumann and bankrolled by SoftBank.
The New York-based firm has listed both assets and liabilities in the range of $10 billion to $50 billion in its petition filed in a New Jersey federal court. Its bankruptcy filing is limited to locations in the U.S. and Canada, it said.
“Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet,” WeWork chief executive David Tolley said in a statement.
“We defined a new category of working, and these steps will enable us to remain the global leader in flexible work. I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement. We remain committed to investing in our products, services, and world-class team of employees to support our community.”
More to follow.