An American startup coworking space, WeWork, officially filed for bankruptcy on Tuesday, November 7, 2023. This decision was influenced by various factors, including the COVID-19 pandemic, which forced people around the world to work from home.

In its peak in 2019, WeWork had a valuation of $47 billion, but it now finds itself with debts totaling $18 billion, compared to assets worth $15 billion. With its current stock price, WeWork's value is less than $50 million, a far cry from its earlier valuation. The New York-based company filed for Chapter 11 bankruptcy under the U.S. Bankruptcy Code, allowing it to continue operating as it restructures its organization and seeks external funding.

WeWork has secured restructuring support agreements with stakeholders, including major investor SoftBank, to reduce its debt by more than $3 billion and eliminate most of its shares.

CEO of WeWork, David Tolley, stated in documents submitted to the court in New Jersey, USA, that they are working to reject more than 60 office lease contracts in North America and will use the legal process to renegotiate other contracts.

"I am very grateful for the support of our financial stakeholders as we work together to strengthen the capital structure and expedite this process through the restructuring support agreement," said Tolley.

Despite the bankruptcy filing, WeWork's coworking spaces continue to operate as usual, including those in the UK. However, it is still uncertain whether this bankruptcy will affect WeWork's business in Indonesia.

"WeWork will continue to exist, and we plan to remain in most buildings in the future," WeWork stated in a statement gathered by KompasTekno from The Guardian on Wednesday, November 8, 2023.

As of the end of June 2023, WeWork had business operations in more than 700 locations with 730,000 members.

WeWork, founded in 2010 by Adam Neumann and Miguel McKelvey, initially offered office space rentals with a relaxed and creatively decorated working environment. They were also known for providing alcoholic beverages at their rented offices. However, in 2019, a decrease in office space rentals occurred due to conflicts of interest involving Neumann, which damaged the company's reputation. Neumann was removed from his position in 2019 due to pressure from investors.

These challenges were compounded by the COVID-19 pandemic, which resulted in office closures worldwide. People were encouraged to work from home to prevent the spread of the virus.

In the first half of 2023, WeWork reported losses of over $1 billion, largely due to operational and other office-related costs. Now, Neumann expresses disappointment that WeWork had to file for bankruptcy.

"It has been a challenge for me to watch WeWork from the outside since 2019. WeWork has failed to capitalize on highly relevant products today," said Neumann in a statement on Business Wire on November 6.

"I believe that with the right strategy and team, the reorganization will enable WeWork to rise successfully," he concluded.