WeWork, the startup sponsored by SoftBank Group whose quick rise and collapse changed the office industry globally, filed for bankruptcy in the United States on Monday after its bets on businesses using more of its office-sharing space went bad.According to the sources, SoftBanks WeWork has filed the bankruptcy with liabilities ranging from $10bn to $50 bn.SoftBank, a Japanese technology giant that owns around 60% of WeWork and has contributed billions of dollars to its turnaround, has acknowledged through this move that the company would not be able to exist until it renegotiates its expensive leases while filing for bankruptcy.The sources have claimed that WeWorks struggled with costly leases and corporate clients quitting because some staff work from home have made profitability difficult to achieve. Not only this, 74% of WeWorks revenue was spent on space payments in the second quarter of 2023, which also is a contribution. According to the bankruptcy that has been filed by the company, the estimate assets and liabilities range from $10 billion to $50 billion.WeWork could use provisions of the U.S. bankruptcy code to rid itself of onerous leases, law firm Cadwalader, Wickersham & Taft LLP said in a note to landlords on its website in August. Some landlords are bracing for a significant impact.WeWork: The most valuable startup in USWeWork, which was among one of the most valuable startups in US valued at $47 billion, having been founded by Adam Neumann. Major Wall Street banks, such as JPMorgan Chase, supported it and venture capital company Benchmark, among other bluechip investors, made investments in it.
