WeWork, a company that was once valued at close to $50 billion, filed for bankruptcy protection in a stunning fall

With its filing for Chapter 11 bankruptcy protection, WeWork—once viewed as a Wall Street darling that would completely transform the way people commuted to work worldwide—has suffered a precipitous decline in value.

The New York business announced late on Monday that it had reached a restructuring deal with the majority of its investors, which would reduce its debt as it looks to reduce the amount of commercial office leases it holds.

WeWork is currently bearing the consequences of its early, aggressive growth. The company went public in October 2021 following the disastrous failure of its initial attempt to go public two years prior. Adam Neumann, the founder and CEO, was fired as a result of the scandal because of his extravagant spending and unpredictable behavior, which alarmed early investors.

Nicole Schmidt, an attorney and managing partner at investment banking firm Oberon Securities, stated, "I feel like (WeWork) has been imploding in slow motion," referencing Neumann's actions that preceded the company's unsuccessful initial public offering (IPO).

She continued, "WeWork as a company may survive, but they have a ton of baggage." "The new management group needs to demonstrate that they are capable managers."