Home Insolvency & Bankruptcy WeWork files for Chapter 11 bankruptcy protection in US

WeWork files for Chapter 11 bankruptcy protection in US

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WeWork files for Chapter 11 bankruptcy protection in US

On 7 November 2023, WeWork filed for Chapter 11 chapter safety in the USA. This got here after years of struggling to seek out its footing, and was exacerbated by the COVID-19 pandemic, which led to a decline in demand for shared workplace area.

WeWork was as soon as valued at $47 billion, however its share value plummeted in 2023 after it was revealed that the corporate had exaggerated its profitability and was going through a mountain of debt. In August 2023, WeWork introduced that it was contemplating chapter, and it suspended buying and selling of its shares.

The corporate’s chapter submitting is proscribed to its places in the USA and Canada. WeWork has mentioned that it intends to trim “non-operational” leases, and it has already requested the flexibility to reject the leases of sure places.

WeWork’s insolvency is a blow to the co-working business as an entire. It additionally raises questions on the way forward for the workplace market, as increasingly persons are selecting to make money working from home.

Additionally See: Chapter 7, 11, 13…all about US insolvency legal guidelines

In the meantime, in gentle of current developments about WeWork International’s Chapter 11 submitting information, Karan Virwani, CEO at WeWork India, issued please a press release clarifying the way forward for the India enterprise.

Right here’s the assertion:

In the present day, WeWork International has made the choice to provoke an necessary strategic reorganization course of within the US, together with recognition proceedings in Canada. It is a step in the direction of enhancing its enterprise’ economics, and enabling them to proceed delivering best-in-class providers effectively into the longer term. 

WeWork India operates independently of WeWork International, and our operations won’t be affected in any method. It’s a separate entity in itself, and we aren’t part of this strategic reorganization course of. The Chapter 11 submitting doesn’t impression the operations of the worldwide entity because it continues to stay in possession of its enterprise, working as common. The method restructures the money owed and the leases of WeWork International within the US and Canada. Throughout this era, we’ll proceed to carry the rights to make use of the model title as a part of the working settlement, whereas serving our members, landlords, and companions as common.

WeWork India is backed by majority stake holder Embassy Group, and is dedicated to investing in the way forward for our enterprise. We stay totally centered on delivering distinctive and revolutionary versatile workspace options for our members within the area. We’re the leaders within the versatile workspace business and have reworked the way in which India works. WeWork India has been worthwhile since 2021, and we’re dedicated to the strong development and success of the enterprise and the business.

WeWork India is a separate entity from WeWork International. The current information across the potential chapter and Chapter 11 submitting within the US could have no impression on the members and stakeholders in India. Any growth globally has no bearing on the operations of the enterprise. In India, we’ll proceed to function and serve our members, landlords, and companions as common.

We’re backed by the Embassy Group which holds the bulk stake and management to run and function the enterprise in India. We have now achieved constant and sustainable development, operationally and financially. WeWork India is the chief within the versatile workspace business and has reworked the way in which India works. We’re dedicated to the strong development and success of the enterprise and the business.

Additionally Learn: Why is J&J contemplating submitting chapter in US?

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