Office-sharing company WeWork has initiated bankruptcy proceedings in the US with the goal of addressing nearly $20 billion in debts. WeWork, supported by SoftBank, aims to achieve this by

restructuring its operations and significantly reducing its lease portfolio. The company has assured that its office spaces will remain open and operational, and it will continue providing services to its members. This bankruptcy process does not include locations outside the US and Canada.

CEO David Tolley expressed the need to address legacy leases and improve the company's balance sheet. At its peak, WeWork had a valuation of $47 billion, but losses and mounting debt led to a collapse in its share price.

Earlier this year, the company conducted a debt restructuring to stay afloat, but by August, it expressed doubts about its ability to continue trading. Despite these challenges, WeWork's London operations have shown signs of recovery with increased demand for office space in September, as more employees returned to work. WeWork assured its members that the bankruptcy process would not impact their membership agreements. Photo by Ajay Suresh from New York, NY, USA, Wikimedia commons.