What the WeWork bankruptcy means for Philadelphia-area workers

Damon C. Williams and Gabe Hauari, Bucks County Courier Times
·2 min read

WeWork, the office-sharing, co-working company that leased out swanky office spaces to small groups, filed for Chapter 11 bankruptcy protection in New Jersey federal court this week.

Here is what WeWork's bankruptcy filing means for small businesses in Bucks County that rely on the company's office-sharing offerings and convenient locations in Philadelphia.

WeWork promises locations in Philadelphia, elsewhere will remain open

According to its website, WeWork currently operates two "WeWork Buildings" in Center City Philadelphia, at 1900 Market St. and at 1100 Ludlow St.

In a press release, WeWork officials said all of its spaces will remain open and operational during the bankruptcy proceedings.

“Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet,” WeWork CEO David Tolley said. “We defined a new category of working, and these steps will enable us to remain the global leader in flexible work."

More about WeWork's bankruptcy filing

WeWork, which recently had an estimated worth of roughly $47 billion, filed bankruptcy to reduce its debt, which stands at a reported $18 billion.

more on WeWork filing for bankruptcy: WeWork files for bankruptcy years after office-sharing company was valued at $47 billion

As part of its filing, WeWork's leadership is also requesting the ability to reject the leases of locations deemed non-functional.

What is WeWork?

In a nutshell, WeWork, founded in 2010 by Adam Neumann, provides office spaces that are available to lease. WeWork currently operates roughly 190 locations nationwide.

The story of the company and the ex-CEO was made infamous last year when Apple TV released a series about Neumann's marriage and WeWork called "WeCrashed."

'WeCrashed' review: Review: Jared Leto gets to go as wild as he wants in WeWork drama 'WeCrashed'

The company attempted to go public in 2019, when it was worth nearly $50 billion, but nearly went bankrupt just six weeks later. Neumann stepped down as CEO shortly thereafter.

Sandeep Mathrani took over as CEO in February 2020, but the COVID-19 pandemic added to the company's troubles. WeWork went public in October 2021 through a merger.

This article originally appeared on Bucks County Courier Times: WeWork files for bankruptcy; has two spaces in Philadelphia