WeWork has filed for bankruptcy protection as it struggles with costly leases and the surge in remote work.
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WeWork's survival
SoftBank holds a 60% stake in WeWork and has poured billions of dollars into its revival. The bank admits that WeWork's survival hinges on renegotiating its expensive leases through bankruptcy.
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Assets and liabilities
The company disclosed estimated assets and liabilities ranging between $10 billion and $50 billion.
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WeWork's rapid rise
Under the leadership of founder Adam Neumann, WeWork's valuation soared to $47 billion, drawing investments from prominent investors like SoftBank, Benchpark, and JPMorgan.
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...and fall
However, Neumann's focus on growth over profits and revelations about his unconventional behavior led to his removal and the collapse of an IPO in 2019. COVID-19 further intensified WeWork's challenges.
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Competition
WeWork also faced competition from commercial property firms, which started providing short and flexible leases to adapt to the declining office sector.