WeWork Inc founder Adam Neumann is reportedly interested in buying back the company as it faces financial challenges and the need to secure substantial funding to prevent bankruptcy. The shared office space provider is in need of approximately $400 million in new capital to improve its chances of successfully emerging from its financial troubles, as noted by sources familiar with the situation.
According to Alex Spiro, an attorney representing Neumann's real estate company Flow, Neumann and his financial partners are willing to surpass any rival bids for WeWork by offering 10% more. Neumann has already put forth a bid exceeding $500 million to reclaim ownership of WeWork, a move that signifies his determination to regain control of the company. WeWork, however, has not yet provided any comment in response to these reports. The company, which is backed by SoftBank, has outlined plans to exit Chapter 11 bankruptcy proceedings in the U.S. and Canada by the end of May, highlighting successful negotiations that have led to a significant reduction in rent obligations from landlords amounting to over 40%, totaling more than $8 billion.