NEW YORK (AP) - WeWork has officially emerged from bankruptcy. And all eyes are on whether its new leadership can guide the long-embattled provider of co-working office space to success.
WeWork has emerged from bankruptcy. What’s next for the co-working office space provider?
NEW YORK (AP) - WeWork has officially emerged from bankruptcy. And all eyes are on whether its new leadership can guide the long-embattled provider of co-working office space to success.
Once a Wall Street darling promising to revolutionize the world of work, WeWork took a stunning - but anticipated - fall last November when it filed for Chapter 11 bankruptcy protection. Early overexpansion shackled WeWork with mounting debt and unsustainable real estate costs, and the New York-based company turned to restructuring in a bid to resurrect its business.
WeWork emerged from the restructuring, which took effect Tuesday after being finalized in court last month, as a private company. That means its future financial disclosures will be limited, but the company says it’s shed more than $4 billion in debt, raised $400 million of additional equity capital, and cut future lease obligations in half - which it expects to bring some $12 billion in future savings.
WeWork’s real estate footprint also got smaller. The company exited 170 "unprofitable” locations - bringing its portfolio to about 600 wholly owned, franchisee and joint-venture locations in 37 countries. That’s down from around 770 locations across 39 countries reported ahead of November’s Chapter 11 filing.