Former CEO of WeWork, Adam Neumann, seeks to repurchase coworking company for 500 million euros.

WeWork, the embattled office and coworking space rental platform, is facing a potential purchase offer from its co-founder and former CEO Adam Neumann. The company declared bankruptcy last November with a debt of $18.656 billion and assets of $15,063 million. Despite facing difficulties in 2020 due to Neumann’s management and leadership style causing a loss of trust from Softbank, its main investor, the company remains focused on emerging from bankruptcy protection of Chapter 11 in the second quarter as a financially sound and profitable company.

Neumann formed “a coalition of half a dozen financial partners” to present the potential offer two weeks ago. Notably, Third Point fund and Baupost Group were not included as possible allies in this potential purchase offer. WeWork faced difficulties after Neumann’s management and leadership style caused a loss of trust from Softbank, its main investor. The company faced a failed IPO in 2020 and the outbreak of the pandemic further affected its ability to sustain its business model focused on shared office spaces.

However, if accepted by the court overseeing WeWork’s bankruptcy proceedings, Neumann’s recent purchase offer indicates a potential move towards regaining control of the company he formerly led. With his experience in running WeWork for nearly a decade before his departure in September 2019, Neumann may be able to bring fresh perspectives and innovative ideas to help revive the struggling business.

By Sophia Gonzalez

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