It is reported that WeWork, the originator of shared office, will file for bankruptcy, and SoftBank has suffered heavy losses.

According to sources, the shared office company WeWork plans to file for bankruptcy next week. The company, which is backed by Japan's SoftBank, is struggling with massive debt and huge losses

WeWork's stock price in after-hours trading following the news It fell 32%. Shares have fallen about 96% this year.

The report quoted people familiar with the matter as saying that New York-based WeWork is considering filing for bankruptcy protection in the US state of New Jersey.

WeWork declined to comment.

Earlier on Tuesday, WeWork said it had reached an agreement with creditors to temporarily defer payments on some of its debt as it expires.

WeWork’s net long-term debt reached $2.9 billion as of the end of June this year, while long-term leases exceeded $13 billion. WeWork's bankruptcy filing would be a stunning reversal of fortunes for the company, given rising borrowing costs in the commercial real estate industry. In 2019, the company was privately valued at $47 billion, a significant loss for investor SoftBank.

WeWork has been in trouble since a planned IPO failed in 2019. Investors are skeptical of its business model of leasing properties long-term and renting them out short-term, and are concerned about its huge losses.

WeWork’s woes did not ease in the following years. Eventually, the company was successfully listed in 2021, but its valuation dropped significantly. As its main backer, Japan's SoftBank Group invested billions of dollars to support the startup, but the company continued to lose money

In August 2021, WeWork raised "issues" about its ability to continue operations. Serious doubts", leading to the resignation of many executives, including CEO Sandeep Masrani

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