US: San Francisco-based coliving platform HubHaus has ceased trading, citing a lack of funds.
In a September 30 letter sent to property owners and tenants, HubHaus owner Diablo Management Group said “HubHaus is completing a liquidation and closure of the company”. As part of that process, an analysis by Diablo found there were “no funds available to pay the claims of unsecured creditors (e.g. claims by landlords, tenants, trade creditors, or contractors).”
Founded in 2016 by Shruti Merchant and Kerry Jones, HubHaus, unlike competitors that offer rooms in apartment-style accommodation, housed its members in multimillion-dollar houses.
San Francisco newspaper Mission Local had reported that homeowners were not getting paid full rent by HubHaus — even if their tenants were paying in full and on time. One homeowner, angry the company blamed COVID-19 for suddenly shutting down, said: “They are a venture-funded company that should have business interruption insurance, access to small business assistance, credit lines, etc.”
