US: Coworking startup The Wing has permanently closed its six US locations.
The company has arranged for workspace and membership needs to be handled by coworking space operator IWG, and described the months since it reopened during the pandemic as “extremely challenging”.
“With the backdrop of the Covid pandemic and increasing global economic challenges, we have been unable to recover and grow the level of active membership and event activity necessary to run a financially sustainable operation,” the company said in an email to members.
The Wing was co-founded by Audrey Gelman and Lauren Kassan in 2016 as an all-female coworking space. At its peak, it had 11 locations in two countries but downsized to six: three in New York City and one each in Chicago, Los Angeles and San Francisco.
In recent years, the company has had financial troubles that were exacerbated by the pandemic and allegations of workplace discrimination.
In 2018 it faced a lawsuit that argued the startup’s female-only membership was discriminatory. The company later amended its membership policy to allow men to join.
The firm’s valuation fell from $365 million in 2018 to $200 million in 2020 after WeWork divested its stake following its abandoned IPO.
In 2020 the New York Times reported allegations of racism and workplace discrimination against employees. Gelman stepped down as CEO, saying it was “the right thing for the business” and the best way to bring the Wing “into a long overdue era of change”. She was replaced by Kassan, Celestine Maddy and Ashley Peterson.
