Wework founder Adam Nuemann bids to buy co-working firm back for £394m

Wework founder Adam Neumann has submitted a $500m (£394m) bid to buy back the troubled co-working business. 

Neumann submitted the offer but it was not immediately clear how he would finance the acquisition, sources familiar with the matter told the Wall Street Journal. 

It follows reports last month, that lawyers acting for the billionaire sent a letter to the flexible co-working space, informing them he was partnering with New York-based hedge fund Third Point for a potential bid. 

Neumann and his real estate startup Flow had been trying to get the information necessary to formulate a bid, Bloomberg said. 

However, people familiar with the matter said Third Point is not involved in Neumann’s new deal. 

City A.M has contacted mentioned parties for a response. 

The American businessman founded Wework in 2010 and oversaw the business when it hit a peak private market valuation of $47bn (£37bn). 

He stepped down as chief after a failed IPO, which crushed its value after investors raised concerns about his running of the company. 

The co-working giant formally filed for Chapter 11 bankruptcy in the US in November. 

Since filing for bankruptcy the company has scaled back operations in London. 

There are now just 30 Wework sites advertised on the company website down from 35 available spaces last month after the company exited its Bishopsgate and Clerkenwell sites. 

At its peak, the trendy workspace provider had 50 sites across London.