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WeWork shares plunge on report of looming bankruptcy filing

  • Shares of WeWork plummeted by more than a third in after-hours trading, as reports surfaced that the troubled company is planning to file for bankruptcy.
  • WeWork's financial struggles have been ongoing, with net long-term debt reaching almost $3 billion in June and a loss of 98% of stock market valuation in the past year. The company had raised concerns over its business model of long-term leases and short-term rentals.
  • WeWork's reduced valuation resulted in a postponed IPO and a decline in share value. The company has suffered from the impact of COVID-19, as well as multiple executive departures.
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The company would be ready to file for bankruptcy as early as next week, according to the Wall Street Journal.

·Paris, France
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Forbes broke the news in United States on Tuesday, October 31, 2023.
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