WeWork has filed for bankruptcy in the United States in an effort to free itself from the vast debts and onerous leases that have caused it to rack up huge losses in recent years.
WeWork will now be able to vacate dozens of buildings across America to which it had signed lengthy and expensive leases, while also being able to “drastically reduce” its multibillion-dollar debts.
David Tolley, its chief executive, insisted that WeWork “has a strong foundation, a dynamic business and a bright future”, but it marks a stunning reversal in fortunes for a company that only a few years ago was the world’s most-fêted start-up, valued at almost $50 billion.
The shares, listed in New York, were halted from trading yesterday morning pending confirmation.
