Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen Coje_He for the clue delivery! WeWork, an office-sharing company, plans to file for bankruptcy as early as next week, according to people familiar with the matter on Tuesday. The company, backed by Japan's Softbank Corp., is facing huge debts and huge losses.

WeWork's shares fell 32 per cent in after-hours trading after the news. Share prices have fallen by about 96% so far this year.

The report quoted people familiar with the matter as saying that New York-based WeWork is considering filing for bankruptcy protection in New Jersey.

WeWork declined to comment.

Earlier on Tuesday, WeWork said it had reached an agreement with creditors that a temporary delay in paying some of its debt was about to expire.

At the end of June, WeWork had net long-term debt of $2.9 billion, long-term leases of more than $13 billion, and more trouble for the company amid rising borrowing costs in the commercial real estate sector.

WeWork's bankruptcy filing will be a startling reversal of the company's fate. In 2019, the company had a private valuation of $47 billion, a big loss for investor Softbank Corp..

WeWork has been in trouble since its planned listing failed in 2019. Investors are sceptical about its business model of leasing it for a long time and renting it for a short time, and are worried about its huge losses.

The plight of WeWork has not been alleviated in the following years. Eventually, the company went public in 2021, but its valuation fell sharply. Japan's Softbank Corp. Group, its main supporter, has invested billions of dollars to support the start-up, but the company continues to lose money.

In August, WeWork expressed "serious doubts" about its ability to continue to operate, and several senior executives left, including chief executive Sandeep Mathrani.

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