Second Home, the coworking space start-up founded in 2014 by Rohan Silva, a former special adviser to ex-U.K. Prime Minister David Cameron, is on the brink of collapse.
The company, which operates office spaces in London, Lisbon, and Los Angeles, is preparing to appoint administrators after filing an intention to do so, according to The Telegraph.
Silva, who had been CEO and later a director of Second Home, stepped down in February and is no longer involved with the business.
Despite receiving significant investment from venture funds like Atomico, Index Ventures, and the U.K. Government’s Future Fund, Second Home has faced significant financial struggles.
The company was hit hard by the pandemic, with revenues plummeting as businesses moved to remote work. In 2022, it underwent a recapitalization, with American billionaire Riaz Valani taking control of the company.
Valani’s firm, Global Asset Capital, provided much-needed funds to keep the company afloat. However, despite the rescue, the business has continued to struggle with costs and declining demand for physical office spaces.
Shared office providers, like Second Home, have faced an uphill battle in a post-pandemic world, with many companies opting for remote or hybrid work models.
This shift has led to reduced demand for commercial office spaces, adding to the challenges faced by businesses like WeWork (which filed for bankruptcy in 2023).
Second Home’s future remains uncertain, with restructuring experts from FRP Advisory reportedly being lined up to advise on the potential administration process.
