WeWork, the office-sharing company once valued at $47 billion, has officially filed for bankruptcy protection. The company had been struggling for months to stay afloat amidst the financial hit of the COVID-19 pandemic, and failed efforts to find a buyer.
The Chapter 11 filing is an important step for the company as it looks for ways to reorganize and restructure its finances, attempting to shed significant amounts of debt and renegotiate contracts with landlords and other leasing partners. Depending on how the restructuring process goes, it may also involve the sale of some WeWork subsidiaries, a significant reduction in number of employees, and a dramatic scaling down of its operations.
Ultimately, the filing flips the script on the company, which just two years ago was valued at an astounding $47 billion. With the bankruptcy now in place, however, the company will have to work to rise above the financial struggles and emerge with a more sustainable, viable business model.