Reported 7 months ago
WeWork's bankruptcy reorganization plan was approved by a US court on May 30, allowing the company to operate its coworking business under new ownership as a smaller private entity, with John Santora appointed as CEO, aiming to turn a profit by 2025. The approval by New Jersey's bankruptcy court judge John Sherwood opens the doors for the once valued at $47 billion shared workspace provider to make a comeback amidst the current commercial real estate market downturn. WeWork is also severing ties with its founder Adam Neumann, who aggressively expanded the company before stepping down in 2019. After encountering setbacks following its failed IPO attempt in 2019, WeWork secured a successful SPAC listing, but later faced difficulties due to market collapse and poor financial management, leading to its bankruptcy filing in 2023. Through an injection of $45 million from Yardi Systems, WeWork's largest shareholder, the company has the opportunity to rebuild after its market value shrank to around $500 million post-bankruptcy, down from its peak of $47 billion in 2019.
Source: YAHOO