Big Wall Street company WeWork is going bankrupt
New York, November 8: Global coworking company WeWork, which was 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 balance sheet.
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. market valuation was once $47 billion. The company has suffered a net loss of $696 million in the first half of the current year.
No impact on Indian business: David Tolli
WeWork CEO David Tolley said, “Now is the time to prepare for the future and aggressively resolve legacy lease issues and clean up our books.” WeWork had long been
threatened with bankruptcy. In August, the New York-based company admitted its ability to remain a business. WeWork India is owned by Bengaluru-based real estate company Embassy Group. It has been 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.