WeWork, the office sharing company, filed for Chapter 11 bankruptcy protection on Tuesday, also requesting for the ability to reject leases of certain locations which it said are largely non-operation.
The company, once valued at $47 billion, said it has entered into a restructuring support agreement with the majority of its stakeholders to “drastically reduce” the company’s debt.
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Amid the turmoil faced by the company in the United States, its India unit issued a statement to ally fears regarding its future.
“WeWork India is a separate entity from WeWork Global. The recent Chapter 11 filing will not impact our members and stakeholders in India. We will continue to operate and serve our members, landlords, and partners as usual. Committed to the growth and success of our business”, the company said in a statement on social media platform X.
WeWork India said it is backed by majority stake holder Embassy Group which is committed to invest in the future of its business. “We remain fully focused on delivering exceptional and innovative flexible workspace solutions for our members in the region. We are the leaders in the flexible workspace industry and have transformed the way India works. WeWork India has been profitable since 2021, and we are committed to the robust growth and success of the business and the industry”, the company statement added.
‘Time to pull the future forward’, says WeWork CEO
WeWork CEO David Tolley in a statement said,“Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet. We defined a new category of working, and these steps will enable us to remain the global leader in flexible work.”
In August, the New York-based WeWork had sounded the alarm over its ability to remain in business. But cracks had begun to emerge several years ago, not long after the company was valued as high as $47 billion.
(With AP inputs)