WeWork declares bankruptcy in the US

The $47 billion (£38 billion) shared office company WeWork was forced to declare bankruptcy in the US.

The choice was made in the wake of a corporation that was once thought to be the workplace of the future and its dramatic rise and fall.

WeWork's petition will shield it from landlords and creditors while it reorganises its massive debt.

WeWork is currently valued at less than $50 million based on its most recent share price.

The bankruptcy will impact the company's operations in the US and Canada.

According to the company, its co-working facilities are still open and running, even in the UK.

By the end of June, the organisation had over 700 locations worldwide and around 730,000 members.

In a statement released late on Monday, WeWork, a loss-making company with billions of dollars in debt, stated that filing for bankruptcy would enable it to "further rationalise its commercial office lease portfolio" while attempting to maintain service continuity for its users.

Following an unsuccessful 2019 attempt to raise capital through a public listing that damaged the company's reputation and resulted in Mr Neumann's dismissal, demand for the shared office spaces at the company declined.

The pandemic quickly followed, forcing individuals to work from home due to several workplace closures worldwide.

WeWork lost more than $1 billion in the first half of this year due to various expenses including the cost of running its offices.

As negotiations with financiers and landlords heated up last month, WeWork informed investors that it would not be making loan payments.

Tens of billions of dollars have been invested in WeWork by its largest stakeholder, SoftBank, a Japanese technology behemoth, despite the company's ongoing losses.

Mr Neumann, the founder of the company, believes that "with the right strategy and team, a reorganisation will enable WeWork to emerge successfully".

(Sources:bbc.co.uk)