The former chief executive of WeWork Adam Neumann has attempted to buy his beleaguered former company back.
He approached the bankrupt firm about a potential deal in December, while a letter from Neumann’s advisers was sent to the company on Monday, which expressed dismay at WeWork’s lack of engagement in the idea.
The approach has come from Neumann’s new real estate company, Flow Global, which has already raised $350 million from the venture capital firm Andreessen Horowitz.
Michael Kovacs, founding partner of fellow office company Castleforge, said: “Neumann created what is arguably the most recognised flexible office brand in the world. We’ve said before that WeWork’s troubles did not stem from it being a flexible office operator, offering leases on short terms.
“Instead, the company was too highly geared – through the implied leverage from its operating leases – and it also took on unprofitable locations to cater to large corporate tenants that it thought the IPO market was looking for.
“If WeWork can solve both of those issues in bankruptcy by throwing back the keys to its creditor/landlords across its unprofitable locations, even if it means emerging a much smaller version of itself, this could be a great deal for a new buyer like Neumann.”
WeWork was founded in 2010 and grow to have more than 800 locations around the world.