WeWork files for bankruptcy

WeWork, which was founded in 2010 with the goal of revolutionizing the way people work, has filed for bankruptcy protection. It follows the company warning investors recently that was teetering on the brink of collapse.

Ted Shaffrey/AP

WeWork, the once-buzzy startup that was valued at $47 billion at its peak, filed for Chapter 11 bankruptcy protection on Monday in federal court in New Jersey.

In its bankruptcy petition, the company listed assets and liabilities between $10 and $50 billion. The company said 92% of its lenders agreed to a restructuring plan that would allow WeWork to operate during the reorganization.

“As part of today’s filing, WeWork is requesting the ability to reject the leases of certain locations, which are largely non-operational and all affected members have received advanced notice,” said WeWork Chief Executive David Tolley in a statement.

The bankruptcy filing marks a staggering new low for the company, which at its heyday won billions of dollars in funding from deep-pocketed investors for putting a Silicon Valley spin on the less-flashy business of subleasing office space to workers.

A vision for office work never fully realized

Erratic, flamboyant and sometimes-barefoot founder Adam Neumann launched WeWork in 2010. It expanded at a breakneck pace and attempted to revolutionize the way people work, a lofty goal that was never fully realized.

Neumann described WeWork as “the world’s first physical social network,” with office spaces featuring sleek furnishings, minimal design and, often, kombucha and beer on tap. He had hoped to draw both freelancers working remotely and office workers to WeWork sites, forming a global community that believed in “the energy of We” with…