Office sharing giant WeWork has filed for Chapter 11 bankruptcy protection, this is a huge fall as the company once valued at $47 million, reports the Associated Press.

WeWork announced it reached a restructuring support agreement with a majority of stakeholders to reduce its debt and reassess its commercial office lease portfolio. This move is expected to reduce the company’s debt by around $3 billion, according to CEO David Tolley.

As part of the filing, WeWork is also seeking to reject leases for locations that are mostly non-operational, with over 70 leases set to be rejected initially. The fate of WeWork locations that will remain operational remains uncertain, with the company currently in negotiations with landlords. Lease liabilities, which account for a significant portion of WeWork’s operating costs, have been a primary challenge for the company.

WeWork’s financial struggles are the result of its rapid expansion in its early years, which ultimately led to a failed attempt to go public in 2019 and the ousting of founder and CEO Adam Neumann. SoftBank came to the rescue by acquiring majority control, but the company’s shareholders have seen their equity largely wiped out.

The COVID-19 pandemic and changes in office dynamics have further disrupted WeWork’s business model, with a rise in remote work and a limited recovery in office space utilization. There’s also increasing competition in the flexible office industry, including from traditional office landlords.

While WeWork’s bankruptcy filing will have a notable impact on the commercial real estate market, the company remains committed to delivering flexible workspace solutions for its members, both in the U.S. and globally, with locations outside the U.S. and Canada unaffected by the bankruptcy proceedings.