(Yicai) Nov. 3 -- If office-sharing space provider WeWork does file for bankruptcy in the United States, WeWork China would not be involved as it is an independent business, a source at the Chinese company reportedly said.

“WeWork China separated from New York-based WeWork as early as the end of 2020, and we are full of confidence in the Chinese market,” China News reported, citing the person.

WeWork is mulling filing for Chapter 11 bankruptcy in New Jersey as early as next week, The Wall Street Journal reported on Oct. 31. It would be a stunning fall from grace for a company that was once worth USD47 billion, but has failed to make money since being established in 2010.

WeWork China was authorized to use the ‘WeWork’ brand in the country in August and is a completely independent operation from the US firm and is not a branch or subsidiary, the Shanghai-based firm said at the time.

WeWork China is owned by private equity firm Trustbridge Capital, which poured USD200 million into it in 2020, detaching it from the brand founder. The company is operated by Flex Office, which was set up in 2015 with a registered capital of USD15 million and is mainly engaged in business services, according to corporate data platform Tianyancha.

WeWork China operates in 12 cities in China, serving more than 6,000 businesses and over 70,000 members.

WeWork has faced a number of controversies and challenges over the years, and underwent a major restructuring in 2019. But the Covid-19 pandemic further upended its operations as office spaces shut and businesses switched to remote working arrangements.

At USD1.11 each, WeWork’s shares [NYSE: WE] have lost 98 percent of their value since the end of last year.

Editor: Kim Taylor