Categories: Asia

Shares Plummet as Bankruptcy Looms


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WeWork shares fell over 35% in premarket trading after reports emerged that the company could file for bankruptcy next week. The New York-based firm, once valued at $47 billion, now has a market capitalization of around $121 million.

The bankruptcy filing follows a series of troubles for the SoftBank-backed company since its IPO plans were halted in 2019 due to skepticism over its business model of short-term leases.

WeWork, which went public in 2021 at a lower valuation than initially anticipated, remains a significant issue for SoftBank, causing billions of dollars in losses for its investors.

The COVID-19 pandemic exposed the company’s weak business model, and it is considering filing a Chapter 11 petition in New Jersey. WeWork has also withheld an interest payment on senior notes due 2025, despite having the cash to make the payment. The stock lost about 96% of its value this year.



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