WeWork Inc (NYSE:WE) plans to file for bankruptcy as early as next week, according to a Wall Street Journal report citing sources familiar with the matter.
Shares of the flexible workspace provider plunged 33.3% in afterhours trading on the news to US$1.52.
The New York-based company is reportedly considering filing a Chapter 11 petition in New Jersey.
WeWork warned in a regulatory filing in August of a possible bankruptcy as “losses and negative cash flow from operating activities raise substantial doubt about our ability to continue as a going concern.”
Once valued at $47 billion, WeWork since 2019 has been plagued with solvency issues due to its losses and softening demand for workspace solutions during the pandemic.
A planned initial public offering (IPO) in 2019 was canned and in 2021 it went public via a merger with a special purpose acquisition company (SPAC).
It reported a net loss of $700 million for the first half of 2023 after posting $2.3 billion in losses in 2022.
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