Los Angeles coworking operator CTRL Collective has filed for Chapter 11 bankruptcy.
After the firm dwindled down its locations to one sole space in Pasadena, the company filed for bankruptcy and declared $4.2 million in liabilities, as well as over $529,000 in current cash.
CTRL Collective was founded in 2015, first opening a 23,000 square foot space in Playa Vista.
According to court records, Maurice Marciano, cofounder of fashion label Guess, owns over a 10% stake in the company. Robert Walston, former CEO of CTRL Collective, also owns at least a 10% stake.
Despite its multiple locations across the country, CTRL Collective never became profitable. In 2019, it reported a $9 million loss just as it was planning to spend $850,000 on renovating its downtown Denver location.
By mid-2021, the operator was facing a lawsuit from the property owner of its Playa Vista location, NSB Associates. The landlord claimed that CTRL Collective had not paid rent for over 12 months and owed over $650,000.
However, the bankruptcy hasn’t fully stopped CTRL Collective’s operations — the company is still taking inquiries for its Pasadena location.
The coworking industry is currently at a crossroads. While some operators have been able to position themselves as the ideal alternative workspace for both small businesses and large corporations, others have fallen victim to the pandemic.
Overall, office leasing has fallen across all of the US, leading operators and landlords to revamp what a coworking space looks like.