WeWork is set to emerge from bankruptcy, aiming for a fresh start with reduced debt and fewer office locations. Founded in 2010, the company, which rents out shared office workspaces, was once seen as the future of the office. However, it incurred significant losses during a rapid global expansion. WeWork filed for bankruptcy last year due to a sharp decline in demand for office space caused by the pandemic.

Since then, the company has used court protection to renegotiate its rental leases and collaborate with lenders. After bankruptcy, WeWork plans to operate 337 shared office spaces globally, about half the number it had in June 2023. The US and Canada will remain its largest markets, with over 170 locations.

A New Jersey bankruptcy court approved a plan on Thursday to eliminate $4 billion (£3.1 billion) of the firm’s debt and reduce its future rent obligations by $12 billion (£9.4 billion), more than half of its total obligations. The changes include a new owner, Yardi Systems, which supplies software to office and residential landlords. Yardi Systems will take a majority stake in WeWork in exchange for providing $450 million (£353 million) in financing, along with other investors. Japan’s SoftBank Group will also remain a backer.

Judge John Sherwood, in approving the plan, stated that the restructuring would position the firm to become “a viable, successful company.” WeWork expects the restructuring to be completed by mid-June.

This approval comes days after former WeWork boss Adam Neumann abandoned his attempt to buy the company. He had reportedly offered $500 million, despite the company’s valuation of nearly $50 billion in a private investment round in 2019. Neumann left the company after a failed effort to raise more money by listing shares on the stock market revealed significant financial losses and raised questions about his leadership. The whole series of events inspired the Apple TV series “WeCrashed,” starring Jared Leto and Anne Hathaway.