They re-founded an art studio in the abandoned factory building.

re-founded 是动词 re-found 的过去式形式。re-found 由前缀 re-（表示"重新"）和动词 found（创办、建立）组成，字面意思是"重新创办"或"重新建立"。re-founded 表示"（过去）重新创办"的动作。