WeWork shares fell more than 50% in early trade after media reports that the flexible workspace provider was planning to file for bankruptcy as early as next week.
The New York-based firm, struggling with a heavy debt load and hefty losses for a few years now, was once privately valued at $47 billion.
It was valued at $9 billion when it eventually floated in 2021, but today's share price slump leaves it with a market capitalisation of just over $60m.
The bankruptcy filing would follow a series of troubles for the SoftBank-backed company since its IPO plans imploded in 2019 on skepticism over its business model of taking long-term leases and renting them for short term.
WeWork remains a black spot for SoftBank, that sunk billions for its investors.
"Although the façade had started to be chipped away to reveal big losses and high debts before the pandemic, the Covid-crisis put paid to its already weak business model," said Susannah Streeter, head of money and markets, Hargreaves Lansdown.
WeWork is mulling over filing a Chapter 11 petition in New Jersey, the WSJ first reported yesterday.
The company decided to withhold interest payment due on November 1 on senior notes due 2025, even as it has the cash to make the payment, it said.
The stock was last trading at $1.45 before the opening bell, after losing about 96% of its value this year.
WeWork raised "substantial doubt" about its ability to continue operations in August, with numerous top executives, including CEO Sandeep Mathrani, departing this year.
