One of Dublin's largest office tenants has filed for bankruptcy in the US amid reports of mounting debts and huge losses.

US-based start-up WeWork has four different locations in Dublin and almost 800 worldwide. The New York-based firm has offices at the 2 Dublin Landings building in the Docklands, as well as premises on Harcourt Road and at Charlemont Exchange near the Grand Canal.

The company is also the major tenant at the newly renovated office complex on Dame Street, occupying seven of the nine storeys. However, the company confirmed overnight that it has filed for Chapter 11 bankruptcy in a bid to "drastically reduce" the company's debt while further assessing its commercial office leasing portfolio.

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CEO David Tolley said: "Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet. We defined a new category of working, and these steps will enable us to remain the global leader in flexible work."

WeWork, once valued at $47 billion (€44 billion), has been crippled by large debts and losses, and its stock price has already plummeted by more than 96% this year. The office sharing company's stock trading was suspended on Monday following reports it may seek bankruptcy protection.

In August, the company cautioned that it faced "substantial doubt" about its capacity to continue as a going concern. The challenging US commercial property market and a weaker-than-expected performance at the time were cited as the main issues facing the company.

America's real estate sector is suffering as a result of rising borrowing prices after the US Central Bank's decision to raise interest rates in order to combat inflation. WeWork has also experienced a departure of senior management, with previous CEO Sandeep Mathrani leaving earlier this year. David Tolley took his position.

Since being valued at $47 billion in 2019 and announcing intentions for a public market offering the same year, the company's fortunes have taken a sharp turn for the worst. Investors were concerned about the company's losses and doubt about its underlying business plan, which involves taking out long-term leases and then renting them out for the short term.

It ultimately floated in 2021, but at a much reduced price, and has battled to get its finances back on track, despite SoftBank putting in tens of billions of dollars and gaining controlling ownership as part of the financing.

Adam Neumann launched WeWork in 2010 to lease workplaces where workers and businesses may rent and share space. The failed early effort to float in 2019 damaged the company's reputation and resulted in Mr Neumann's resignation.

WeWork is asking for the "ability to reject leases of certain locations," which it claims are mostly non-operational. It did not specify how many locations would be affected by the relocation.

However, it stated that its office spaces, including those in Ireland, are still open and operational. As recently as September, the business stated it would continue to occupy the majority of the old Central Bank of Ireland building in Dublin 2, even as it sought to renegotiate virtually all of its leases throughout the world.

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