WeWork, the office-sharing company once valued at $47B, files for bankruptcy protection
WeWork, the office-sharing company, has filed for bankruptcy protection. The company, once valued at $47 billion, was forced to seek the protection as a result of the economic downturn triggered by the coronavirus pandemic. WeWork’s primary mission of providing office space to small businesses and entrepreneurs had become significantly compromised over the past several months, as stay-at-home orders in many countries led to a reduced need for physical office space. The company had made several major cuts earlier this year in efforts to survive the economic crisis, including reducing its staff by 25 percent and closing more than 100 locations. As a final effort to stay afloat, WeWork has agreed to enter a process known as a pre-packaged chapter 11 bankruptcy filing, which will allow the company and its creditors to negotiate the terms of a plan of reorganization in a controlled manner.