The founder of bankrupt flexi workspace company WeWork Adam Neumann is reportedly trying to buy back the company.
WeWork filed for bankruptcy in November last year, after a major crash in its valuation.
Neumann’s new real estate company, Flow Global, has sought to buy WeWork or its assets, as well as provide bankruptcy financing to keep it afloat, the sources said, Reuters reported.
WeWork may be forced to take new bankruptcy loan
DealBook first reported the development, saying Neumann’s lawyers sent a letter to WeWork on Monday, claiming Daniel Loeb’s hedge fund Third Point would help finance the transaction.
Third Point, however, told Reuters on Tuesday it has held “only preliminary conversations” with Neumann and his property company Flow and has not made any financial commitments.
Reuters said Flow Global did not immediately respond to its request for comment.
WeWork said it routinely receives “expressions of interest” and reviews them to align with the best Interests of the company.
“We continue to believe that the work we are currently doing – addressing our unsustainable rent expenses and restructuring our business – will ensure WeWork is best positioned as an independent, valuable, financially strong and sustainable company long into the future,” the Reuters report said, citing a company statement.
Meanwhile, an attorney for WeWork said on Monday the company may be forced to take a new bankruptcy loan to make up for the slower-than-expected progress on rent negotiations.
Under Neumann, WeWork grew to be the most valuable US startup worth $47 billion.
But his pursuit for growth at the expense of profit and revelations about his eccentric behavior led to his ouster and derailed an initial public offering in 2019.
The SoftBank-backed company racked up losses on its long-term lease obligations as more people began working from home during the pandemic and demand for office space plunged.
Shortly before WeWork filed for bankruptcy, Neumann said in a statement, “I believe that, with the right strategy and team, a reorganisation will enable WeWork to emerge successfully”.
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