WeWork Inc., a pioneer in flex office leasing, has filed for protection under Chapter 11 of the U.S. Bankruptcy Code, and intends to file recognition proceedings in Canada under Part IV of the Companies’ Creditors Arrangement Act, the company announced November 6.
WeWork’s locations outside of the U.S. and Canada are not part of this process. WeWork’s franchisees around the world are similarly not affected by these proceedings, according to the company.
“Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet,” CEO David Tolley said in a prepared statement. “We defined a new category of working, and these steps will enable us to remain the global leader in flexible work.”
Once valued at $47 billion, WeWork listed about $18.7 million in debts and $15.1 million in assets as of June 30, 2023.
WeWork is filing with the Court a series of customary “First Day Motions” to facilitate a smooth transition into the process and to support operations throughout its cases, which it expects to be approved in short order. The Company will continue servicing its existing members, vendors, partners, and other stakeholders in the ordinary course of business. WeWork expects to have the financial liquidity to execute these proceedings and continue business in the ordinary course.
More information to come on Canadian operations.