NeueHouse, an upscale members-only co-working club, abruptly closed its three locations in Venice, Hollywood and New York City on Friday, citing severe financial challenges.
The announcement, which was published on the company’s website and social media accounts Thursday, came just two days after the company encouraged people to sign up for memberships in an Instagram post.
Members were ultimately given less than 48 hours to collect their belongings from the clubhouses.
“Although NeueHouse has created an extremely valuable business that is prized by members and event hosts, unfortunately, it has been burdened by legacy liabilities,” according to the post on the company’s website, which was attributed to the NeueHouse board. “Despite our best efforts to find a sustainable path forward — including exploring every possible solution to address these challenges — we have made the very difficult decision to wind down the business.”
All three locations shut down at 2 p.m. Friday. In their statement, board members said they regret the impact the closure will have on employees and members, but noted that they believe this is “the most responsible path for all our stakeholders.”
Jennifer Duguay was caught off guard by the sudden shutdown. She joined the Venice location in mid-August and paid for three months of membership up front.
Moreover, she was upset on behalf of staff members who abruptly lost their jobs.
“In my short time there, I built meaningful connections with the hardworking staff,” she said. “Walking in the day after the announcement was heartbreaking. Despite being left completely in the dark, the staff still showed up with grace and professionalism.”
Lucas Ho, who worked in IT at the Venice location, said employees were only given a day and a half of notice before they lost their jobs — without any severance pay. He said he had seen signs of financial trouble for a while before the closure announcement.
“I felt exactly as anyone would expect someone to after a job loss, but also oddly relieved,” he said. “The ever-increasing level of dishonesty to employees, members and vendors was sickening.”
Ho said he loved his job, though, and will miss both the employees and the members.
Duguay said she never received an email informing her of the closure and knows of members who paid their annual fees just days before the announcement was made.
One Venice woman told Los Angeles Magazine that she was only able to utilize the Venice clubhouse three times after paying for an annual membership up front on Aug. 29.
“It was so cutthroat. They took my money, didn’t say a word. I feel bad for the staff,” Katrina Dargel told the magazine. “Anger doesn’t even cover it.”
Membership costs listed on the NeueHouse website ranged from $3,600 for an individual annually to $8,000 a month for a private office, which is equivalent to $96,000 a year.
The shutdown comes one month after NeueHouse co-founder Joshua Abram died at age 62 from multiple myeloma, according to the New York Times.
NeueHouse’s first clubhouse opened in New York City in 2013 amid the co-working frenzy that birthed the rise of ventures such as WeWork. But many co-working spaces have struggled to keep their doors open in recent years.
NeueHouse sought to pair the convenience and collaboration of shared office space with the trendiness and amenities of other members-only clubs such as Soho House and the San Vicente Clubs — selling members on a place to work, socialize and dine.
“For over a decade, NeueHouse has served as a center of creativity, community, design and innovation where trailblazers have convened to push boundaries and discover new ideas,” said the board in a statement. “Our mission has always been to provide a space for creators, innovators and thought leaders to gather and connect.”
The company opened its Hollywood house at 6121 Sunset Blvd. in 2013. It was housed inside the former West Coast CBS headquarters where classic shows such as “I Love Lucy” were filmed and iconic musicians such as Janis Joplin and the Beach Boys recorded. That location offered a library, co-working space, writers’ rooms, juice bar, restaurant, podcast studios, screening room and a rooftop terrace.
The Venice location opened in December 2022 in a 1922 building owned by “The Sting” producer Tony Bill at 73 Market St., near several upscale restaurants and buzzy bars. It boasted co-working spaces, a broadcast studio, podcast studio, bike and surfboard rentals, an art gallery, private event spaces and a rooftop restaurant and bar overlooking the ocean.
