One Of The 2010s’ Trendiest Startups Plans To File Bankruptcy
Business,Bankruptcy,Remote Work,Banking And Finance
The once-booming start-up WeWork will file for bankruptcy as early as next week as the company struggles to pay its debts, according to The Wall Street Journal.
WeWork, a company that seeks to provide flexible workspaces that individuals and businesses can rent, could file for Chapter 11 bankruptcy as soon as next week after it missed interest payments to bondholders that were due on Oct. 2, according to the WSJ. The company was once valued at $47 billion, fueled by venture capital funds eager to invest.
The company was given 30 days to make its debt payments after failing to pay interest to bondholders but reached a deal on Tuesday for a seven-day extension so that negotiations could occur before the event of a default, according to the WSJ. The company spent about $530 million out of its reserves in the first half of the year, leaving it with only $205 million in cash as of June to go towards its operating expenses and debts.
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