WeWork Filed for Bankruptcy – Webtekno

At the end of the 2010s, a new concept entered our lives: Shared offices. Organizations that did not want to shoulder the financial burden of a single office adopted the approach of operating in common offices that they shared with other companies. One of the most well-known and pioneers of these companies is WeWork was.

Market value in its prime $47 billion WeWork, denoted as in new jersey by going to court filing for bankruptcy found. While the application also included a list of the company’s assets, it was announced that the total value of the company’s assets was over 15 billion dollars.

The pandemic put an end to the shared office idea

WeWorkstarted to see the benefits of its new business model in a very short time and followed an aggressive growth strategy to meet the demand from companies. For this reason, they resorted to renting many properties. Some of these rentals were for only one month, while others were for longer periods.

WeWork’s application is only for the company operations in the USA and Canada While covering the pandemic, the pandemic was cited as the reason for the difficult period. WeWork, which has offices in more than 777 locations in 39 countries, allows companies to work from home or allow employees to work from home during the pandemic period. unpaid leave Due to its removal, some of its branches became inactive. Even though these offices were closed, large rent payments continued to the property owners. In addition, large expenditures were made on renovations for most of these work areas.

WeWork won’t disappear completely

WeWork By restructuring its balance sheet this year, it reduced its debt by 1.5 billion dollars and postponed some of its debts until 2027. The market value of the company is 50 million dollars had fallen below. Stating that it will not make the rent payments on some properties along with the bankruptcy application, and that the relevant people were notified in advance about the issue, WeWork stated that its debts 3 billion dollars It will give shares in return for the remaining part.

WeWork CEO David Tolley, “We have defined a new category of work and these steps will enable us to maintain our global leadership in flexible working. Through the Restructuring Support Agreementstrengthening our capital structure and I would like to express my deep gratitude to our financial stakeholders for their support as we work to accelerate this process. We are committed to investing in our products, services and world-class team of employees to support our community.” he said.

There are many companies offering shared and virtual office services in our country. Workinton, eOfis Although many companies such as are in this field, Turkey is not among the countries where WeWork serves.