The company WeWork, provider of shared work spaces, announced this Monday your bankruptcy filing in the United Statesafter facing years of financial challenges that led it to accumulate a debt of more than 10,000 million Dollars.
In an official statement, The company reported its decision to file for Chapter 11 of the bankruptcy law American before a court in New Jersey. According to documents presented in the judicial process, the company, founded in 2010 by Israeli businessman Adam Neumannfaces a debt that ranges between 10,000 and 50,000 million dollars.
WeWork detailed that it has already reached a debt restructuring agreement with the creditors who own more than 92% of its notes secured, which includes the reduction of its commercial lease portfolio. Additionally, the company will focus on ensuring the continuity of its business, as indicated in the statement.
The CEO of the company, David Tolley, he claimed: “We remain committed to investing in our products, services and our team of employees..” Likewise, WeWork clarified that its decision to file for bankruptcy It will not affect WeWork franchises outside the United States and Canada.
The company’s financial problems worsened as a result of the coronavirus pandemic, as the remote work model became more popular in the US, which is why WeWork had already raised “substantial doubts” on its ability to continue operating in August, and numerous senior executives, including CEO Sandeep Mathrani, left the company over the course of the year.
WeWork Latam: what will happen to the business in the region
The company announced that it will focus on reducing rental costs, negotiate more favorable rental conditions, increase its revenue and raise capital in the coming year as part of its strategy to address financial challenges. But, having said the above, the question that arises is what will happen to Wework’s business in Latin America.
According to the Bloomberg agency, WeWork Latam’s business, which includes AArgentina, Brazil, Chile, Colombia and Mexicowould not be affected by what happened in the US.
This is because the US and Latin American entities operate independently, Therefore, WeWork Latam maintains that this decision will not affect members, services or access to the different coworking points in the region.
Source: Ambito
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