WeWork declared bankrupt in Canada and the United States

After having been in serious economic difficulty for years, WeWork, the company that provides shared workspaces for startups, small businesses and freelancers, has declared its bankruptcy in Canada and the United States. The situation arose as it attempted to negotiate debt relief: the company said the measure will impact operations in the United States and Canada, but global operations are expected to continue as usual. WeWork leaders also explained that they lost billions of dollars in the first six months of 2023, due to a decline in demand linked to poor economic conditions.

The current situation

“Now is the time for us to move forward into the future by aggressively addressing our legacy leases and significantly improving our balance sheet,” WeWork CEO David Tolley said in a statement. “We have defined a new category of work and these steps will allow us to remain a global leader in flexible working.” continues Tolley. In early August WeWork warned US stock market regulator SEC that it feared for its survival by warning: “There are substantial doubts about the Company’s ability to continue as a going concern.”