Trading in the shares of the multinational office and coworking space rental company WeWork has been suspended this Monday “pending news” by the New York Stock Exchange operator, after information that appeared last week about the company’s imminent bankruptcy filing.
The Wall Street Journal reported last week, citing knowledgeable sources, that the company was planning to imminently file a request for Chapter 11 bankruptcy protection to restructure its activity.
WeWork shares, which were valued at almost 50,000 million dollars (46,598 million euros), have depreciated almost 99% so far this year, closing last Friday at 0.84 dollars, well below the record price of $14.97 that it reached on October 22, 2021, one day after its stock market debut.
The company’s shares began trading on Wall Street in October 2021 with BowX Acquisition, a special purpose acquisition company (SPAC), two years after WeWork was forced to cancel its jump in September 2019. to the trading floor, shortly after Adam Neumann, co-founder of the firm, decided to step down as CEO.
WeWork reported last August that it recorded losses of 349 million dollars (325 million euros) in the second quarter of the year, which represents a decrease of 39.5% compared to the ‘red numbers’ recorded by the company. in the same period of 2022, which raised the ‘red numbers’ for the first half of the year to 613 million dollars (571 million euros).
However, despite reducing its losses, the company then warned that, as a result of the company’s losses and projected cash needs, combined with higher member turnover and liquidity levels, “there is substantial doubt about the company’s ability to continue as a going concern.