In 2009, a much loved British store called Woolworths closed down. Any of us who ever stole candy from them as kids feel a deep sense of blame for the chain’s demise. Now WeWork is on the brink and I must confess I’ve never paid the company a cent, but have enjoyed many delicious beers at their offices. I didn’t expect to become the harbinger of doom for a second time, but it’s funny how things pan out.

The lowdown

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The long read

What went wrong at WeWork?

Yesterday I brought you news of WeWork’s impending bankruptcy. The company was once valued at $47 billion and currently has a market cap of just $65 million. As the company’s former head of product strategy put it, “SoftBank sunk about $20 billion into WeWork. That’s larger than the GDP of Bolivia. Now its investment is probably worth as much as a pretty nice house in San Francisco.” So how did the company go from the future of work to the brink of bankruptcy?

The botched listing

In 2019, the WeWork hype was real. The company had grown to become the largest private tenant in Manhattan, with a sizable real estate portfolio around the world. Startups flocked to its offices to drink kombucha, play table tennis, and maybe also do some work.

But WeWork was haemorrhaging money. It had reported a loss of nearly $2 billion the previous year. When it tried to go public, investors weren’t keen, and banks became more hesitant to lend. In September 2019, founder and CEO Adam Neumann left the company. A month later, Softbank struck a deal to take control of the company, valuing it at just $7 billion.

The pandemic hits

Neumann was replaced by Sandeep Mathrani in February 2020, just a month before the first coronavirus lockdowns. The shift to working from home led many to speculate that WeWork wouldn’t survive the pandemic. But the working patterns that emerged after Covid-19 suited WeWork. Companies that no longer needed an office for all of their employees five days a week could rent a smaller space on more flexible terms.

However, the way WeWork handled leases at the start of the pandemic upset some of their customers. “Their behaviour was unforgivable,” one former tenant told the BBC, “so even if my team did go back to a shared workspace I would go out of my way to ensure that it isn't a WeWork.”

Another CEO quits

In 2021, Mathrani successfully took WeWork public. He cut costs, boosted revenue across business segments, and strengthened the balance sheet. In December 2022, the company turned its first profit since the IPO. But in May, Mathrani abruptly announced his departure, raising new questions about WeWork’s financial health. In August, the company raised “substantial doubt” about its ability to continue operations.

The coworking space missed interest payments due to its bondholders on October 2. It had a 30-day grace period to make the payment. On Tuesday, WeWork said it had agreed another seven days to negotiate before a default is triggered. The company has limped on for years, but now – finally – appears to be close to the end.

The content we're consuming today

• Bloomberg: Goldman insider trader gets three years in ‘squash buddies’ case ($)

• The Guardian: Microsoft accused of damaging Guardian’s reputation with AI-generated poll

• Variety: Crisis at Marvel

Off-balance sheet items

• Get in, loser. Walmart got the Mean Girls gang back together.

The bottom line