The four Utah locations of WeWork will remain open, a company spokesperson said Tuesday — a day after the coworking startup announced it is declaring bankruptcy.
According to the New York City-based company’s bankruptcy documents, WeWork has filed for Chapter 11 protections under the U.S. Bankruptcy Code, which means the company can restructure while remaining operational.
WeWork entered into a restructuring agreement to “drastically” reduce debt, as well as to request the ability to “reject” leases of nonoperational office locations, according to a statement from the company.
WeWork has four locations in Utah: at The Gateway and on 200 South in Salt Lake City, and two buildings next door to each other on Innovation Way in Lehi, at 1633 West and 1557 West. A spokesperson said they would all continue to provide coworking spaces as well as such amenities as meeting rooms, event spaces and fully stocked kitchens.
David Tolley, the company’s CEO, said in the statement that “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.”
In a statement sent to The Salt Lake Tribune, a spokesperson said, “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.”
WeWork listed about $18.7 billion in debts and $15.1 billion in assets as of June 30, according to The Associated Press. Founded in 2010, WeWork was once valued at $47 billion, according to the AP.
Correction: Nov. 7, 4:07 p.m. • This story has been updated to reflect the correct accounting of WeWork’s assets.
