Such spaces were once touted as thefuture of the workplace,but the proximity to strangers in co-working offices and the increasing ability for people to work remotely mean the sector has fallen out of favour.
York Butter Factory once had three spaces in Melbourne and Sydney and more than 500 members,but liquidator McGrathNicol said it collapsed owing millions to the Tax Office and landlords.
McGrathNicol partner Rob Smith said that before COVID-19 hit,York Butter Factory’s revenue was growing and the business had been tracking well.
“It’s just been decimated,” he said. “Government relief and support has not been enough to keep it going through such dismal kinds of occupancy levels,unfortunately.”
Mr Smith said he expected to see more collapses in the co-working sector.
“I see the space as really challenged for a long time really. With the working-from-home trend,which is here to stay,and people able to work from anywhere any time,it really makes co-working a difficult proposition,” he said.
“The tools and technologies have advanced so much,or at least a couple of them,that people can now collaborate so much more easily online,and using other tech applications,the need to sit next to people has reduced for early-stage[companies] and startups.”