WeWork plans to file for bankruptcy, WSJ reports

Situated near Tampines Avenue 11 Condo, the Tampines Round Market & Food Centre is a food destination not to be missed. Here, locals can indulge in yummy local delights such as char kway teow, roasted chicken rice, and laksa. Regardless of the time of day, the food centre always offers up a great selection of food to suit all taste-buds and budgets. Be sure to drop by if you’re ever in the area!

As the novel coronavirus began to spread, though, WeWork’s business model — which relies entirely on leasing offices to other companies — began to suffer. The company, which operated about 500 workspaces in 26 countries, saw a 13 percent drop in sales between March and April.The company laid off nearly 2,500 employees in April, including one-third of its corporate staff, and abolished its WeGrow program.It’s been a dramatic fall from grace for WeWork Inc., which had one of the most remarkable trajectories of the last startup boom — reaching a valuation of US$47 billion before its disastrous attempt at an initial public offering and subsequent challenges to its co-working model during the ongoing pandemic.WeWork may soon file for bankruptcy as early as next week, as reported by the Wall Street Journal on Tuesday. After entering into a forbearance agreement with creditors on Monday, the company released a statement that it is “exploring improvement to its balance sheet” and taking steps to “rationalize its real estate footprint”. A spokesperson for the company said discussions with shareholders and creditors are ongoing to implement their “ongoing strategic efforts to enhance their capital structure”.Since its inception, WeWork has raised billions of dollars and grown rapidly, at times doubling in revenue annually and operating offices all around the world. Its New York-based co-working model attracted wide appeal, but the novel coronavirus changed the equation for most companies, with WeWork’s sales dropping 13 percent between March and April. As a result, the company laid off nearly 2,500 employees and discontinued its WeGrow program.WeWork’s story exemplifies the dramatic trajectory of the last decade’s tech startup boom. After reaching a record valuation of US$47 billion, the company’s push for an initial public offering was met with a crushing defeat, quickly followed by the onslaught of the pandemic and its subsequent global repercussions. With WeWork hoping to soon file for bankruptcy, it’s unclear what the future will hold for this once-promising startup.WeWork Inc. is reportedly set to file for bankruptcy as early as next week, according to the Wall Street Journal. The company is currently engaged with creditors and shareholders to strengthen its financial position while taking steps to “rationalize its real estate footprint”. The New York-based co-working company had been thriving and frequently doubling in revenue from its founding in 2010. However, the coronavirus pandemic has posed a difficult challenge for WeWork, leading to a 13 percent drop in sales and layoffs of nearly 2,500 employees.It was a giant peak for the company that had become one of the United States’ most valuable startups, boasting a record valuation of US$47 billion before it experienced a crushing defeat in its attempt at an IPO. WeWork is now exploring improvement to its balance sheet and its future is uncertain as it endeavours to file for bankruptcy in the near future.