WeWork, the SoftBank Group-backed startup whose meteoric rise and fall reshaped the office sector globally, has sought US bankruptcy protection after its bets on companies using more of its office-sharing space soured.
The move represents an admission by SoftBank, the Japanese technology group that owns about 60% of WeWork and has invested billions of dollars in its turnaround, that the company cannot survive unless it renegotiates its pricey leases in bankruptcy.
SoftBank said it believed WeWork's restructuring support agreement was the appropriate action for the company to reorganise its business and emerge from Chapter 11 proceedings. In a filing with the New Jersey bankruptcy court, WeWork listed assets of $15.06 billion and liabilities of $18.66 billion as of June 30.
Neumann's pursuit of breakneck growth at the expense of profits, and revelations about his eccentric behavior, led to his departure and the derailment of an initial public offering in 2019. Many of its landlords, who were also feeling the squeeze, had little incentive to give WeWork a break on the terms of their leases.
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