The announcement, which was foreshadowed last week, follows a spectacular fall from grace for the company that was once valued at US$47 billion (A$74 billion).

Under Chapter 11 bankruptcy, a business can continue operating while its owner and creditors reorganise its debts to enable the business to become profitable.

In a statement, WeWork said it has entered into agreements with the vast majority of its secured note holders after missing interest payments owed to them pushed it to the brink.

Its business model of taking long-term leases on office space, which it then sub-let under short-term arrangements, ran into trouble. In August the company revealed it would only be able to stay in business if it improved its liquidity and profitability over the next 12 months.

Key to its survival will be its ability to reduce its operating costs, of which lease liabilities account for two-thirds.

The statement said: “During this period, WeWork will further rationalise its commercial office lease portfolio while focusing on business continuity and delivering best-in-class services to its members.”

CEO David Tolley said: “WeWork has a strong foundation, a dynamic business, and a bright future. Now is the time for us to pull the future forward by aggressively addressing our legacy leases and dramatically improving our balance sheet.”

The company added that: “global operations are expected to continue as usual”.