WeWork has officially declared bankruptcy and files for Chapter 11 in the US.

 Co-working space company WeWork filed for Chapter 11 bankruptcy protection in federal court in New Jersey, saying it had entered into agreements with the vast majority of its secured note holders and that it intended to cut “non-operating” leases.

The bankruptcy filing is limited to WeWork locations in the U.S. and Canada , the company said in a news release. The company reported liabilities ranging from $10 billion to $50 billion , according to the bankruptcy filing.

“I am deeply grateful for the support of our financial stakeholders as we work together to strengthen our capital structure and accelerate this process through the Restructuring Support Agreement,” WeWork CEO David Tolley said in a statement. press. “We remain committed to investing in our world-class products, services and team of employees to support our community,” he added.

WeWork's problems

WeWork has suffered one of the largest corporate collapses in recent history in recent years. Valued in 2019 at $47 billion in a round led by Masayoshi Son's SoftBank, the company unsuccessfully attempted to go public five years ago.

The pandemic caused more pain, as many businesses abruptly ended their leases and the economic crisis that followed led to even more customers closing their doors.

The company already revealed in an August regulatory filing that bankruptcy could be a concern.

WeWork debuted through a special purpose acquisition company in 2021, but has since lost about 98% of its value . In mid-August, the company announced a 1-for-40 reverse stock split to return its shares to trading above $1, a requirement to maintain its listing on the New York Stock Exchange.

WeWork shares had fallen to a low of around 10 cents and were trading at around 83 cents before it was halted on Monday.

Former CEO and co-founder Adam Neumann said the presentation was “disappointing.”

“It has been challenging for me to watch since 2019 how WeWork has failed to take advantage of a product that is more relevant today than ever ,” Neumann said. “I believe that, with the right strategy and team, a reorganization will allow WeWork to emerge successfully .”

In September, the company said it had been actively renegotiating leases and was “here to stay.” The company had about $16 billion in long-term lease obligations, according to regulatory filings.

The company leases millions of square feet of office space in 777 locations around the world , according to its regulatory filings.

For the bankruptcy process, WeWork has hired Kirkland & Ellis and Cole Schotz as legal advisors. PJT Partners will act as its investment bank, with support from C Street Advisory Group and Álvarez & Marsal.