WeWork, a shared office space provider once valued at $47 billion, has filed for bankruptcy protection. The filing was filed in the Southern District of New York and follows the company’s failed attempt to raise funding to stay afloat.
The company, which had aggressively expanded over the past decade, revealed during its failed public offering that it had accumulated large losses. It had previously been valued at $47 billion but was forced to drastically reduce its valuation when it withdrew its offering.
The bankruptcy filing comes after attempts to find outside funding to keep the business afloat. SoftBank, its largest backer, was unable to bring about a “stalking horse” bid that would have seen the Japanese conglomerate acquire the company’s assets.
In its filing today, WeWork said that it has reached a “comprehensive agreement” with its lenders that will provide it with $1.75 billion in debtor-in-possession financing and $300 million in New Cotai financing. This funding is “intended to sustain the business and its operations during the secured lender’s restructuring.”