Shares of shared office provider WeWork fell nearly 50% to a record low. This happened just a day after media reports that the company plans to file for bankruptcy as early as next week.
The company has been struggling with large debts and huge losses for several years. Once valued at $47 billion, it now has a market capitalization of only about $121 million. During this year, the company depreciated by about 96%. The stock last traded at an all-time low of $1.18.
WeWork’s losses quadrupled to $2.1 billion
The company may have another quarter to live
The US company’s plans for an IPO collapsed in 2019 amid skepticism about its business model of taking long-term leases and short-term rentals. WeWork went public in 2021 at a much lower valuation than originally expected. The company will remain a black mark for SoftBank, which has poured billions into its efforts to prop up the startup, which has never turned a profit.
WeWork is considering filing for Chapter 11 in New Jersey, according to Wall Street Journal reports. Back in August, WeWork warned that it could go bankrupt. Meanwhile, many managers, including CEO Sandeep Mathrani, have left.