WeWork, the once high-flying startup backed by SoftBank, filed for U.S. bankruptcy protection, signaling SoftBank’s acknowledgment that survival depends on renegotiating costly leases. The firm struggled with unprofitable leases, cancellations by corporate clients allowing remote work, and high expenses. The bankruptcy filing estimated WeWork’s assets and liabilities between $10 billion and $50 billion. Once valued at $47 billion, WeWork’s rapid growth and eccentric founder led to an IPO derailment in 2019. SoftBank doubled down on its investment, but even lease amendments couldn’t offset the pandemic’s impact. WeWork’s recent CEO change and debt restructuring efforts couldn’t prevent the bankruptcy filing.
WeWork Seeks U.S. Bankruptcy Protection as SoftBank Acknowledges Survival Hinges on Lease Renegotiations
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