© Reuters. Adam Neumann, CEO of WeWork, speaks to friends in the course of the TechCrunch Disrupt occasion in Manhattan, in New York Metropolis, NY, U.S. Could 15, 2017. REUTERS/Eduardo Munoz/ File Picture
(Reuters) -WeWork founder Adam Neumann is attempting to purchase again the versatile workspace supplier that filed for chapter in November, sources conversant in the matter stated on Tuesday.
Neumann’s new actual property firm, Stream World, has sought to purchase WeWork or its property, in addition to present chapter financing to maintain it afloat, the sources stated.
DealBook first reported the event, saying Neumann’s attorneys despatched a letter to WeWork on Monday, claiming Daniel Loeb’s hedge fund Third Level would assist finance the transaction.
Third Level informed Reuters on Tuesday it has held “solely preliminary conversations” with Neumann and his property firm Stream and has not made any monetary commitments.
Stream World didn’t instantly reply to a Reuters request for remark.
WeWork stated it routinely receives “expressions of curiosity” and evaluations them to align with the most effective pursuits of the corporate.”
“We proceed to consider that the work we’re presently doing – addressing our unsustainable lease bills and restructuring our enterprise – will guarantee WeWork is greatest positioned as an impartial, priceless, financially sturdy and sustainable firm lengthy into the long run,” the corporate stated in an announcement.
On Monday, an lawyer for WeWork stated the corporate could also be pressured to take a brand new chapter mortgage to make up for the slower-than-expected progress on lease negotiations.
Beneath Neumann, WeWork grew to be essentially the most priceless U.S. startup price $47 billion. However his pursuit for progress on the expense of revenue and revelations about his eccentric habits led to his ouster and derailed an preliminary public providing in 2019.
The SoftBank-backed firm racked up losses on its long-term lease obligations as extra folks started working from dwelling in the course of the pandemic and demand for workplace house plunged.
Shortly earlier than WeWork filed for chapter, Neumann stated in an announcement, “I consider that, with the best technique and crew, a reorganization will allow WeWork to emerge efficiently.”