Shares in Wework tumbled 50 per cent last night on reports the office-sharing firm may file for bankruptcy.The beleaguered firm has been hit hard sinc
Shares in Wework tumbled 50 per cent last night on reports the office-sharing firm may file for bankruptcy.
The beleaguered firm has been hit hard since the pandemic as businesses cancel memberships and people continue to work from home.
It is now considering filing for bankruptcy in New Jersey, according to the Wall Street Journal.
Biopic: Anne Hathaway and Jared Leto (pictured) starred in drama based on Wework co-founder Adam Neuman
That would be a dramatic end for a start-up valued at close to £40billion less than five years ago. The company is now valued at around £49million.
Wework, which rents desk space in offices, was co-founded by Adam Neumann in 2010 and enjoyed strong growth but struggled to keep momentum going after it abandoned a New York listing in 2019 following concerns about excessive spending and alleged drug use by Neumann.
The eccentric businessman was ousted and became the topic of a recent TV mini series WeCrashed, which stars actors Jared Leto and Anne Hathaway.
Although it eventually listed in 2021 with a £7.4billion valuation, it has found it hard to attract workers back with its free coffees and beer on tap.
Today, it has around 512,000 members in 610 locations – but only about 70 per cent of offices are full.