WeWork co-founder Adam Neumann has launched an audacious attempt to buy the flexible workspace company.
Neumann’s new venture Flow Global Holdings has partnered with investment firm Third Point LLC and other investors to try to acquire the business, which filed for Chapter 11 bankruptcy in November last year.
However, according to a letter sent to WeWork’s lawyers, representatives from the flexible workspace company have failed to engage with Neumann, who was forced out of the business in 2019 following a failed IPO.
The letter sent from lawyers representing the group of investors led by Neumann claimed they had attempted to obtain information necessary for an offer to purchase the company or its assets from WeWork since December 2023, but this information had not been forthcoming.
The letter stated: “This behaviour has jeopardised the ability of the company to explore alternatives to the RSA [restructuring support agreement] and has failed to maximise value for all stakeholders – the goal of any bankruptcy process.”
The letter also stated Neumann had arranged up to $1bn of financing to “stabilise” WeWork in October 2022, but the company cancelled a meeting with Neumann while he was en route to meet representatives from WeWork.
It concluded: “In a hybrid work world where demand for WeWork’s product should be greater than ever, my clients believe that the synergies and management expertise offered by an acquisition by my clients could significantly exceed the value of the debtors on a standalone basis. WeWork should at least educate itself about that potential and not preclude itself from maximising value.”
The letter did not include details of how much Neumann intended to offer to buy the business, which was once valued at $47bn.
In a statement, WeWork said: “WeWork is an extraordinary company. As such, we receive expressions of interest from external parties on a regular basis. We and our advisors always review those approaches with a view to acting in 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.”
