The American provider of shared workspaces WeWork has requested a deferment of payment in a so-called ‘Chapter 11’ procedure. It is a new low for the company, which was valued by investors at $47 billion in 2019, but has been struggling with problems for some time now. The company has two branches in Brussels.
WeWork hopes for a restart. This is possible with the ‘Chapter 11’ procedure, which allows companies that can no longer meet their financial obligations to remain active.
WeWork, which also offers two locations in Brussels, said in August that it doubted the company’s survival. The shared workspace provider saw its office locations empty during the first months of the corona pandemic. Since then, the company has struggled to fill its offices properly again.
The Wall Street Journal reported last week that WeWork was due to make an interest payment to bondholders on October 2, but was unable to do so. The share halved in value on November 1 due to rumors of a ‘Chapter 11’.
WeWork has 777 office locations in 39 countries, including 229 locations in the United States, according to the latest figures.
The ‘Chapter 11’ procedure does not apply to locations outside the United States, WeWork said in the press release.