May 15, 2024
Provided Image/WeWork
WeWork says its two Philadelphia locations will remain open as it emerges from Chapter 11 Bankruptcy protection. The photo above shows the WeWork coworking space at 1100 Ludlow St. in Center City.
WeWork is keeping its two Philadelphia coworking spaces open as it emergences from bankruptcy.
The company has completed lease negotiations for its 1100 Ludlow St. and 1900 Market St. locations as part of its restructuring under Chapter 11 bankruptcy protection. WeWork said it seeks to keep its "strongest and most popular locations" open for the foreseeable future.
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A WeWork spokesperson said the company plans to invest in Philadelphia and "provide solutions for all the ways that people want to work."
"Philadelphia continues to be an important market for us as an organization, and specifically the two buildings," the spokesperson said. "We've seen a sustainable path forward to continue operations for the long term and we're super-duper happy with both locations, and that's what we're focused on right now."
WeWork once was privately valued at $47 billion, but it filed for bankruptcy in November 2023 after the COVID-19 pandemic prompted a shift toward hybrid and remote work, lowering demand for in-person workspaces.
WeWork expects to emerge from bankruptcy by May 31. The company has received a $450 million credit and expects to eliminate $4 billion in outstanding debt by reducing rent costs through renegotiating and eliminating leases.
In April, the company rejected a $650 million offer from co-founder Adam Neumann to buy back the company. Neumann resigned in 2019.
At one point, WeWork had five locations in Philadelphia. It shuttered offices over the last several years, including its original space at the Piazza in Northern Liberties. That location closed in October.
The WeWork spokesperson said Philadelphia's need for office space continues to grow.
"We've seen increasing demand for workspaces in Philadelphia, with the rise of flexible work solutions and the increasing prominence of hybrid work," the spokesperson said. "The greatest demand for workspaces continues to be from downtown locations, and Philadelphia is no different."
