News Summary
NeueHouse, an upscale members-only co-working club, has abruptly closed its locations in Venice, Hollywood, and New York City due to severe financial challenges. The closures were announced with less than 48 hours’ notice to members and employees, many of whom were caught off guard by the sudden end. Membership fees ranged from $3,600 annually to $8,000 monthly, leaving many members disappointed after recent investments. This closure raises concerns about the sustainability of co-working spaces amidst increasing financial uncertainties.
Los Angeles – NeueHouse, an upscale members-only co-working club, has abruptly shut down its three locations in Venice, Hollywood, and New York City. The closures, announced on the company’s website and social media accounts, took place on Friday, just two days after the company was promoting new memberships on Instagram. Members were given less than 48 hours to vacate the premises and retrieve their belongings from the clubhouses, marking a sudden end to the members’ access to the facilities.
The decision to close stemmed from what the board described as “severe financial challenges” and “legacy liabilities.” The final shutdown occurred promptly at 2 p.m. on Friday, leading to significant disappointment among members and employees regarding the abruptness of the announcement. The board expressed regret for the impact of the closure on those involved, stating the decision was the “most responsible path for all stakeholders.”
For many members, the announcement came as a shock. Jennifer Duguay, who had recently joined the Venice location in mid-August, voiced her surprise at the closure and expressed concern for the club’s staff. Meanwhile, Lucas Ho, an IT worker at the Venice location, reported that employees were given just a day and a half notice before they lost their jobs without severance pay. This lack of communication led to feelings of anger and betrayal among members, many of whom were unaware of the club’s financial struggles prior to the announcement.
The financial distress appears to have caught some members off guard, as several had recently paid substantial annual fees for membership access. Fees for memberships ranged from $3,600 annually for individuals to $8,000 per month for private office space. One member recalled using the Venice clubhouse only three times since paying the fee on August 29. The Venice location had opened in December 2022 in a historic building owned by film producer Tony Bill and included various amenities like a broadcast studio, podcast studio, bike and surfboard rentals, and a rooftop restaurant.
NeueHouse was known for its vibrant mix of co-working and socializing, gaining popularity amidst the pandemic. The company aimed to cultivate a unique lifestyle experience, positioning itself as a creative center for innovators to gather and share ideas. However, the financial burdens proved too great, ultimately hindering the sustainability of its mission.
Founded in New York City in 2013, NeueHouse sought to distinguish itself from competing co-working spaces, such as WeWork, which is also facing its own financial issues. The company gained a reputation for hosting key industry events for major Hollywood corporations, including Disney, Paramount, and Creative Artists Agency (CAA). Just a month prior to the announcement of the closures, co-founder Joshua Abram passed away from cancer, a notable loss that may have contributed to the company’s challenging situation.
The reaction from members and former employees highlights a general sentiment of dissatisfaction with the company’s lack of proactive communication about its financial state leading up to the abrupt closure. This situation has forced many to reflect on the viability of members-only co-working spaces in an increasingly competitive environment.
As the dust settles from this unexpected turn of events, the community surrounding NeueHouse grapples with questions of sustainability and the future of co-working spaces amidst ongoing financial uncertainties. Members are left to navigate the immediate logistics of securing new working environments, while employees face the daunting challenge of seeking new job opportunities in an uncertain marketplace.
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Additional Resources
- Los Angeles Times
- Wikipedia: Co-working
- Hollywood Reporter
- Google Search: NeueHouse closures
- Los Angeles Magazine
- Google Scholar: co-working spaces
- KTLA
- Encyclopedia Britannica: co-working
Author: STAFF HERE HOLLYWOOD
The Hollywood Staff Writer represents the experienced team at HEREHollywood.com, your go-to source for actionable local news and information in Hollywood, Los Angeles County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as the Hollywood Bowl summer concerts, the Hollywood Christmas Parade, film premieres at TCL Chinese Theatre, and festivals at the Magic Castle. Our coverage extends to key organizations like the Hollywood Chamber of Commerce and Visit Hollywood, plus leading businesses in entertainment, dining, and tourism that define the local economy. As part of the broader HERE network, including HERELosAngeles.com, HEREBeverlyHills.com, HEREAnaheim.com, and HEREHuntingtonBeach.com, we provide comprehensive, credible insights into Southern California's dynamic landscape.
