The upscale, members-only co-working and club brand NeueHouse has abruptly ceased operations at all its locations in Los Angeles and New York City, filing for Chapter 7 bankruptcy. The sudden closure, announced on September 3, 2025, left thousands of members and employees scrambling, with many receiving less than 48 hours’ notice to vacate the premises and collect their belongings.
The Sudden Implosion of a Creative Haven
The news of NeueHouse’s demise came as a shock to its exclusive clientele, which included entrepreneurs, artists, and creative professionals. The company’s final day of business was September 5, 2025. A statement from the NeueHouse board cited “legacy liabilities” as the primary reason for the winding down of operations, despite considerable efforts to find a sustainable path forward. This abrupt shutdown followed closely on the heels of the death of co-founder Joshua Abram in August 2025, though the board’s statement focused on financial and operational burdens.
Deepening Financial Strains and Alleged Mismanagement
Reports indicate that NeueHouse’s financial troubles were extensive and long-standing. By March 2025, the company’s debt had reportedly ballooned to $83.7 million, a significant increase from $54.6 million at the end of September 2023. Former executives pointed to fundamental mismanagement, including exceeding expansion budgets by approximately $40 million. The high cost of leases, coupled with the financial strain of failed restaurant ventures and ambitious expansion plans, contributed to a model that proved unsustainable. Revenue at the Hollywood location, a key hub for the Los Angeles creative scene, had seen a notable decline, dropping to $2.5 million in the first quarter of 2025 from $3.4 million in the same period the previous year.
The Allure and Ambition of NeueHouse
Founded in 2011 by Joshua Abram, Alan Murray, and James O’Reilly, NeueHouse aimed to be more than just a co-working space. It sought to create an exclusive community and a luxurious environment that catered specifically to the needs and aspirations of creative industry leaders. The brand launched its first New York City location in 2013, followed by its flagship in Los Angeles, housed in the historic CBS Radio Building in Hollywood, in October 2015. This iconic space, once a broadcasting hub for luminaries like Orson Welles and the site where the pilot of “I Love Lucy” was filmed, was meticulously designed by Rockwell Group to offer a blend of work, social, and event spaces. Subsequent locations in Downtown Los Angeles (Bradbury Building) and Venice Beach further solidified its presence in the vibrant Los Angeles landscape. NeueHouse offered an array of amenities, including full-service restaurants, auditoriums, screening rooms, broadcasting studios, and rooftop decks, positioning itself as a premium destination for innovation and networking.
The Fallout for Members, Employees, and the Industry
The sudden closure has left a significant impact. Members who had recently paid for annual memberships or upfront fees found themselves without access to services and with no clear path to refunds. Employees were reportedly given minimal notice and no severance pay, adding to the human cost of the collapse. The bankruptcy filing is expected to affect a wide range of creditors. The fall of NeueHouse also raises questions about the long-term viability of high-end, club-like co-working models, drawing parallels to the struggles of other industry giants like WeWork. This news serves as a stark reminder of the fragility within the flexible workspace sector, particularly for ventures that rely heavily on expensive leases and substantial capital investment without a consistently robust revenue stream.
A New Chapter for the Workspace Sector?
The closure of NeueHouse marks the end of a distinctive chapter in the evolution of co-working spaces, particularly in Los Angeles. While the company aimed to provide a unique environment for creatives, the ultimate inability to balance ambitious growth with financial realities led to its abrupt demise. As the industry continues to evolve, the lessons learned from NeueHouse’s collapse willbe considered as the industry navigates evolving demands for flexible and community-oriented workspaces.
