EPAA cyclist at a WeWork location in Paris
NOS Nieuws•vandaag, 10:42
The internationally operating office rental company WeWork has requested a deferment of payment. The company, which was founded in 2010 in the United States, was estimated to be worth $47 billion in 2019.
With a restructuring, WeWork hopes to avoid bankruptcy and make a fresh start. The company says it has reached an agreement with many of its creditors to convert $3 billion in existing loans and bonds into equity. WeWork also wants to terminate rental contracts prematurely through a so-called Chapter 11 procedure.
WeWork has been struggling with problems for years, but these have been exacerbated by rising costs and the fact that working from home has become more popular since the corona crisis. Fewer people therefore choose to work at WeWork.
Value dropped
The company already sounded the alarm about its own future in August. But things have not been going well for WeWork since 2019. The company’s value plummeted from $47 billion to $8 billion. CEO Adam Neumann was ousted and Softbank, the main investor in the company, took control. But attempts to implement changes in the company have had insufficient effect.
According to the latest figures, WeWork has 777 office locations in 39 countries. There are four places in Amsterdam where people can rent an office space, flexible workspace, meeting room or desk.
2023-11-07 09:42:42
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