AUSTIN, Texas — A company operating several offices in the Austin area has filed for bankruptcy.
The Wall Street Journal (WSJ) initially reported last week that WeWork, which has seven locations around Austin, would file for bankruptcy protection as soon as this week after missing payments to bondholders. On Nov. 6, the company officially filed for Chapter 11 bankruptcy protection.
According to the WSJ's initial report, WeWork missed its interest payment on Oct. 2, which triggered a 30-day grace period. On Oct. 31, WeWork said it struck an agreement to extend its grace period by seven days, allowing the company time to negotiate with stakeholders before a default is triggered.
On Nov. 1, WeWork shares tanked by nearly 50% amid the bankruptcy report.
WeWork started in 2010 by creating shared office spaces for small businesses and entrepreneurs. The company was once valued at $47 billion.
On Nov. 7, WeWork shared the following statement with KVUE regarding its bankruptcy filing:
"Austin remains a key market for WeWork and we are fully committed to providing our members here with world-class, flexible workspace solutions for the long term. We have exceptional confidence that we will emerge from this process a financially stronger company so we can focus on investing in our products, our services, our growth, our employees, and our members."