WeWork company applied for bankruptcy.
WeWork company applied for bankruptcy.
WeWork Bankrupt: SoftBank-invested coworking company WeWork is struggling with massive debt and huge losses. WeWork, once the most profitable and widely distributed company, has now filed for bankruptcy. According to media reports, the billion-rupee company had filed for bankruptcy under Chapter 11 in the federal court of New Jersey on November 6.
what did the company say
“I am extremely grateful for the support of our financial stakeholders,” WeWork CEO David Tolley said in announcing the bankruptcy. Also said that it wants to cancel the lease on some destinations which are no longer of much importance to it. Also, he said that all the affected members have already been informed about this by issuing a notice. The CEO also clarified that the bankruptcy is limited to WeWork’s US and Canada locations only. The American subsidiary had given a loan of 19 billion US dollars. This amounts to more than Rs 1.5 lakh crore in Indian currency.
What will be the impact on India?
After WeWork Global’s bankruptcy filing, WeWork India today made a post on X saying that WeWork Global’s bankruptcy will not have much impact on its operations in India. The company has said that it will continue to work as before. He further said that the recent Chapter 11 filing will have no impact on our members and stakeholders in India. We will continue to serve our members, landlords and partners as we always have.
The troubles of WeWork company increased during the Corona period. Investors already had less confidence in this company. However, its performance deteriorated the most in 2021. It was not successful in making profits. Let us tell you that Embassy Group has 73 percent stake in We Work India, while We Work Global has 27 percent stake in it. We Work India has 50 centers across 7 cities in India namely New Delhi, Gurugram, Noida, Mumbai, Bengaluru, Pune and Hyderabad.
