The workspace provider was once considered the most valuable startup in the US. It grew rapidly but faced heavy losses owing to costly leases and a sudden drop in demand during the pandemic. This had pushed the company to file for bankruptcy in November 2023. Recently, a U.S. bankruptcy judge approved WeWork’s restructuring plan, which allowed the elimination of $4 billion in debt. As per the report, the company’s equity will be transferred to a consortium of lenders and real estate technology firm Yardi Systems.WeWork was a major investment for SoftBank Group, with the latter holding nearly 71 per cent of its stake as of last November, despite having written down much of its investment over time. Following the bankruptcy proceedings, SoftBank was expected to maintain a minority stake in the company due to the loans it extended. WeWork also witnessed a sharp decline in its valuation as the estimated post-bankruptcy equity is only around $750 million, this figure once stood at $47 billion.Tolley started out at WeWork as a board member in February 2023, but quickly stepped up as CEO by October. He led the company through a turbulent time, making big changes to how things were done. During his time in charge, WeWork made some major moves, like scaling back its real estate holdings, renegotiating lots of leases, and shutting down over 170 locations that weren’t making any profits for the company.
sekar nallalu Corporate,Cryptocurrency WeWork CEO David Tolley Resigns as the Firm Emerges from Bankruptcy
Related Posts
Ripple CLO to SEC: No Victim to Compensate
Ripple Chief Legal Officer Stuart Alderoty has fired back at the SEC’s recent response to Ripple’s supplementary authority letter. This[...]
Softbank’s high-stakes gamble: balancing 1.86 billion dollar debt and AI innovation
SoftBank, widely recognized for its investment-centric approach in the tech sphere, has made waves again with its recent plan to[...]
Swiggy Introduces UPI Plugin to Curb Dependence on External Payment Services: Report
Meanwhile, Zomato is trying to tone down its fintech business. Just a few months after getting the central bank’s license[...]