According to some reports, WeWork may file for bankruptcy as early as next week. The company has refused to comment on this matter.
WeWork told U.S. financial regulators on Tuesday that it has agreed with its creditors to temporarily defer payments on some of its debt.
The company has lost about 98% of its market value since it was valued at $47 billion.
According to the Wall Street Journal, WeWork is considering a bankruptcy filing in New Jersey. Reuters also confirmed this matter by quoting an informed source.
However, a WeWork spokesperson responded to the reports by saying, “We don’t comment on rumors.”
New York-based WeWork has struggled since it planned to sell its stock in 2019 amid concerns about debt and losses.
The company was also affected by the coronavirus, as social distancing forced people to work from home.
Even though the Japanese bank SoftBank has injected tens of billions of dollars into WeWork, the company continues to lose money.
This year, we saw the resignation of several senior managers of this company.
RCO NEWS