WeWork, a former unicorn startup once valued at $47 billion, has filed for Chapter 11 bankruptcy and stopped paying rent on two of its leases. The company reported liabilities ranging from $10 billion to $50 billion in its filing.
According to the Puget Sound Business Journal, Boston Properties (BPX), a real estate investment trust, has not received payments from WeWork for its office space at Madison Centre in Seattle. Despite having eight locations listed on their website in the Seattle area (including six within the city and two in Bellevue), WeWork’s spaces only totaled just under 1 million square feet as of July 2022.
In light of this expected bankruptcy, WeWork has appointed David Tolley as their new CEO to guide the company through this difficult time. Founded by Adam Neumann in 2011 and ousted as CEO in 2019 after several tumultuous years leading the coworking space startup that was once highly praised. This news was originally reported by Connect CRE.
