WeWork is heading for bankruptcy in the US.

WeWork is fast approaching Chapter 11 bankruptcy, a controlled bankruptcy procedure under the U.S. code, to avoid total collapse. It has 777 offices in 39 countries, serving about 906,000 jobs. There are five offices in Italy, all inMilan.

The company, founded in 2010 in New York with the idea of creating an environment where people and companies can gather and work, has completely changed the world of work, but its history has been really short. It wasn't just because of the 2020 pandemic that dealt the first blow to business.

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The SoftBank-controlled group was valued at $47 billion in 2019 and has already been rescued in 2019 thanks to a major funding of $5 billion''dollars, which, four years later, has not yielded the expected results. The business was hurt initially by Covid and remote work, and then by high interest rates that made the cost of debt unsustainable: as of June 30, the company had $2.9 billion in debt and lost $530 million in the first six months, incurring losses of $696 million.

High rental costs and low space occupancy created a perfect storm: the stock lost more than 40% on Wall Street yesterday. According to Wsj, WeWork has yet to pay interest to its bondholders and may soon file for bankruptcy citing Chapter 11. The New York-headquartered company is considering declaring bankruptcy as early as next week in''New Jersey. WeWork has not commented on the rumors at this time, but noted in a statement that it is in talks with some bondholders already 30 days past due to "improve its financial position" and "optimize its real estate" with a seven-day grace period.

The company has already highlighted the financial difficulties in its half-year report, citing "oversupply in commercial real estate, increasing competition in flex space and macroeconomic instability, which have led to weak demand".