According to authorities, WeWork filed for Chapter 11 bankruptcy protection in the federal court of New Jersey on Monday, reporting that it had entered into agreements with more than 80% of its secured noteholders and that it intends to trim leases which do not serve its objectives. 

WeWork said in a press release that the bankruptcy filing is valid only for its locations in the U.S. and Canada and it has no effect on its international operations. A preliminary filing of WeWork found that the company owed $18.65 billion in debt, with assets valued at $15.06 billion. 

According to the filing, WeWork, an office space provider that serves co-working spaces across the United States and Canada, has filed for bankruptcy to cover the liabilities it has incurred from more than $10 billion to over $50 billion. Earlier this year, the company was valued at $47 billion, and later the same year, it unsuccessfully attempted to go public after being valued at $47 billion in January 2019. 

Investors were unimpressed when they discovered that the company was losing a significant amount of its market value due to the decision of its founder and CEO, Adam Neumann. Its downward spiral was eventually reported in both WeWork: Or the Making and Breaking of a $47 Billion Unicorn, a documentary to be released on Hulu, and in WeCrashed, an Apple TV podcast that has developed into a TV show. 

Those who are affected by the bankruptcy primarily work in the US and Canada, and feel the impact mainly on their businesses. The company has confirmed, however, that its coworking spaces, including those in the UK, continue to be operational despite the project's closure. 

This assurance notwithstanding, according to reports, despite the company's efforts to reorganize its finances, the company has reportedly started closing an office along London's South Bank, as part of a reorganization program. 

In June, WeWork had approximately 730,000 members in over 700 global locations and more than 700 locations worldwide. However, even though the company has a wide network of business contacts, its financial health has deteriorated as it has significant liabilities on its balance sheet that need to be repaid. 

Recently, Co-Founder Adam Neumann expressed his dismay over the trajectory of the company since he stepped down from the company in 2019, in a statement released on Twitter. With Adam Neumann at the helm since 2010, WeWork grew into a brand synonymous with a contemporary, communal working environment, including amenities such as complimentary refreshments, a vibrant look, and a modern architectural feel. 

After a failed attempt at a public listing in 2019, the brand's allure suffered a blow to its appeal, which eventually led to Adam Neumann stepping down from the company. During the Pandemic of 2009, remote work became increasingly popular worldwide, resulting in a shift in the industry towards remote work that exacerbated WeWork's difficulties. 

During the first half of the year, WeWork lost over £800 million. To cope with the financial woes of WeWork, the company has been actively divesting parts of its operations as well as seeking to restructure leases and debts in response to its financial woes. 

There has been extensive media coverage of the company's substantial deficits, internal transactions, and blown-up representations in Apple TV's dramatised portrayal, "WeCrashed," which is based on this fictional account. The firm stated in its latest announcement that WeWork plans to further rationalize the company's commercial office lease portfolio as it aims to improve the member experience while ensuring business continuity. 

WeWork's global operations are expected to continue as planned, according to the firm. The company, which has recently filed for protection under Chapter 11 of the US Bankruptcy Code, wants to emphasize that WeWork's locations outside of the U.S. and Canada are not included in this process. 

It is important to note that WeWork's franchisees around the world are similarly not affected by these ongoing proceedings. Hinting at previous poor decisions, the newly appointed CEO, David Tolley, expressed his belief that it is now the opportune time for the company to proactively bring the future closer by taking aggressive measures to address its legacy leases and significantly improve its balance sheet. 

Despite the challenges faced, it is reassuring to know that the office spaces remain open and operational, ensuring minimal disruptions for customers. However, the future trajectory of WeWork remains uncertain, and it is interesting to speculate on how the company's office space portfolio might evolve in the coming months.