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Adam Neumann, the ousted founder from WeWork, is making headlines again after the New York Times reported that he sent a letter to WeWork advisors — revealing his intentions to buy back the bankrupt workspace provider.
According to a report published by CNBC, Neumann claims he has support from “well-known capital sources” including hedge fund manager of Third Point, Dan Loeb. It’s reported that Neumann and his latest venture, Flow Global, have expressed ongoing interest in buying WeWork, or its assets, in a potential bid to provide the much-needed financing to keep WeWork afloat.
Neumann’s attorney, Alex Spiro claims WeWork has been ignoring attempts from Neumann to get further information.
Spiro writes in the letter first reported by DealBook, “We write to express our dismay with WeWork’s lack of engagement even to provide information to my clients in what is intended to be a value-maximizing transaction for all stakeholders. Although my clients have attempted since December 2023 to obtain information necessary for an offer to purchase the Company or its assets and later to provide debtor-in-possession (DIP) financing to support the Company through the bankruptcy process, they still do not have access to that information. This behavior has jeopardized the ability of the Company to explore alternatives to the RSA and has failed to maximize value for all stakeholders — the goal of any bankruptcy process.”
The news comes as WeWork, once valued at $47 billion, grapples with over $4 billion in secured debt and diminished valuation, according to a report published by The Daily Mail.
In November 2023, WeWork filed for Chapter 11 Bankruptcy and has since been pursuing a downsizing strategy encompassing massive lease negotiations and amendments, coupled with lease rejections. However, WeWork faces major challenges in renegotiating rent costs with prominent landlords while maintaining operations during these changes. It’s led some landlords to accuse WeWork of withholding around $33 million in rent payments that was due on January 1 as a negotiation tactic. With WeWork’s valuation low and debt high, it remains unclear whether Neumann’s interest represents a genuine chance at a revival.
