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07th Nov 2023

WeWork file for bankruptcy months before opening of new Dublin location

Simon Kelly

WeWork bankruptcy

The company has three locations in Ireland.

Giant office-sharing company WeWork has filed for Chapter 11 bankruptcy protection, according to a statement on Monday, November 6, just months before it is set to open a huge new location in Dublin.

Founded in 2010 by Adam Neumann and Miguel McKelvey, WeWork was noted as a revolutionary of the office space industry at its height. The company has now seen their share prices drop 98% this year.

Once valued at $47bn on the private market, its huge drop in share prices have left it now worth less than $50m.

The statement announced that the company has “commenced a comprehensive reorganization to strengthen its capital structure and financial performance and best position the company for future success.”

According to the statement, 92% of the company’s lenders had agreed to convert their secured debt into equity under a restructuring support agreement, wiping out about $3 billion of debt.

Despite their bankruptcy filing, the company said their overseas locations will remain operational.

With three locations currently operating in Dublin, a fourth is planned to open at the old Central Bank building on Dame Street in May 2024, which the company have said they are pushing ahead with as recently as September.

WeWork file for bankruptcy ahead of Dublin office opening

In a statement on Monday, David Tolley, CEO of WeWork thanked the company’s stakeholders for their support and stated that they “remain committed” to investing in their products going forward.

“It is the WeWork community that makes us successful,” said Tolley. “Our more than half-million members around the world turn to us for the best-in-class spaces, hospitality, and technology that our 2,500 dedicated employees and valued partners provide. WeWork has a strong foundation, a dynamic business, and a bright future.

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

“I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and expedite this process through the Restructuring Support Agreement. We remain committed to investing in our products, services, and world-class team of employees to support our community.”

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