WeWork's Bankruptcy: A Result of Office Market Downturn and Empty Offices

WeWork, the once high-flying desk-renting start-up, has filed for bankruptcy as it struggles with pricey leases signed before the pandemic and weak occupancy rates due to the rise of hybrid working. The company has reached an agreement with most of its creditors to convert $3 billion of existing loans and bonds into equity in the reorganized company. WeWork plans to terminate leases early with little financial penalty as it seeks to restructure its more than $13 billion in lease obligations. The bankruptcy filing includes a request to give up 69 leases, and the company is in negotiations with over 400 landlords to improve lease terms. WeWork's international business outside the US and Canada remains unaffected by the filing.