Adam Neumann in bid to buy back WeWork

Bengaluru — WeWork founder Adam Neumann is trying to buy back the flexible workspace provider that filed for bankruptcy in November, sources familiar with the matter said on Tuesday.

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.

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 said on Tuesday it has held “only preliminary conversations” with Neumann and his property company Flow and has not made any financial commitments.

Flow Global did not immediately respond to a 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 company said in a statement.

On Monday, an attorney for WeWork said 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 start-up worth $47bn. But his pursuit for growth at the expense of profit and revelations about his eccentric behaviour led to his removal 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.”

Reuters