WeWork declares bankruptcy, which was once valued at $47 billion.

WeWork, an office-sharing company, has declared bankruptcy in New Jersey, the United States. In 2019, the firm was valued at $47 billion in a transaction spearheaded by SoftBank, and it attempted and failed to go public. Following media allegations that the company was likely to file for bankruptcy, the company’s stock dropped about 50% last week.

WeWork stated that it has gone into a restructuring deal with key stakeholders in order to dramatically decrease its existing funded debt and that it also intends to initiate recognition proceedings in Canada.

These procedures have no bearing on the company’s locations outside of the United States and Canada, as well as its franchisees around the world, it added.

WeWork’s stock has dropped over 98.5% this year. Profitability has been elusive as WeWork struggles with costly leases and corporate clients canceling due to some employees working from home. In the second quarter of 2023, paying for space accounted for 74% of WeWork’s revenue.