WeWork Inc. 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.
Mr. 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 Mr. 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 told Reuters on Tuesday it has held “only preliminary conversations” with Mr. Neumann and his property company Flow and has not made any financial commitments.
Flow Global did not immediately respond to a Reuters 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, a lawyer 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 Mr. Neumann, WeWork grew to be the most valuable U.S. startup worth US$47-billion. But his pursuit for growth at the expense of profit and revelations about his eccentric behaviour 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, Mr. Neumann said in a statement, “I believe that, with the right strategy and team, a reorganization will enable WeWork to emerge successfully.”