(New York) The controversial former boss of WeWork Adam Neumann wants to submit a takeover offer for the shared office specialist, currently in recovery proceedings, a little more than four years after being dismissed for his management considered erratic.
The man who is also co-founder of this former flagship of the new economy has joined forces with other investors, notably Flow Global Holdings and the managing director of the alternative investment company (hedge fund) Third Point, Dan Loeb, according to a letter of which AFP obtained a copy.
In the letter dated Monday, Adam Neumann’s lawyer points out that representatives of WeWork’s creditors have, for the moment, not responded to requests for information from these investors.
These elements are “necessary to make an offer to buy the company or its assets”, the amount of which is not communicated, according to lawyer Alex Spiro.
The latter claims that the investors, including Adam Neumann, have already met with creditors several times, but without obtaining the documents they wish to study.
PHOTO MARK LENNIHAN, ASSOCIATED PRESS ARCHIVES
Adam Neumann
“My clients are ready to submit a detailed proposal for the repurchase of the company or its assets” which is interesting for creditors, as well as lessors, assures Alex Spiro.
“In a hybrid work world where demand for WeWork products should be stronger than ever,” investors intend to provide the company with their “expertise,” according to the lawyer.
Asked by AFP, the representatives of the creditors did not respond immediately.
Cornered financially and trapped in leases with conditions unsuitable for the current situation, WeWork filed for bankruptcy at the beginning of November.
At its peak in early 2019, the start-up was valued at up to $47 billion and planned to go public the same year.
But investors quickly became concerned about WeWork’s economic model and its unbridled growth, but also about the reliability of Adam Neumann as boss.
A charismatic character, the Israeli was known for his abrupt and sometimes unmotivated decisions, his whims and his excesses.
In September 2019, the board of directors landed him, shortly after the postponement of the IPO.
WeWork was then shaken up by the coronavirus pandemic, which emptied part of the offices and from which it never really recovered.
It nevertheless entered Wall Street in October 2021 with a valuation of only around $9 billion.
At the time of the bankruptcy filing, its market capitalization had fallen to 44 million.