In 2012 we saw the coworking trend emerging around the world and wanted to be part of it.
The universe presented an 800 square metre warehouse for lease just 2 minutes walk from our house in Prahran, Melbourne. 3 months later all the paperwork and initial fitout was complete. Depo8 was open for business.
We were already running our tech startup Occasional Butler which was acquired by Airtasker in 2014.
Depo8 started with 24 desks and grew to 80 desks and a community of over 500. It has been our pleasure to have met such a diverse range of people from all walks of life over the years. From startups, small businesses, freelancers, multi-nationals, casuals starting up a new business, nomads travelling through Prahran. So many great people. And some that we unfortunately didn’t quite click with. Put it down to a ‘bad hair day’. But most we will deeply cherish.
This time last year we decided it was time to move on from coworking. WeWork had changed the industry forever and we were ready for the next thing.
After engaging a broker and going through the sale process, we soon learnt that selling a business takes a long time, is drawn out and emotionally draining. With a healthy dose of pain thrown in for good measure. But we did find three potential buyers and eventually signed a contract for sale with the one right buyer.
We were excited but there was one final hurdle. The contract of sale of depo8 was conditional on a new lease between the buyer of depo8 and the landlord. We had been preparing for this for over six months with the landlord. We had a written confirmation and several face to face meetings that the new lease would not have any fundamental changes to it. Until it did.
After enduring a one month delay due to the landlord being on holiday plus another month delay due to the landlord’s solicitor being on holiday, our alarm bells were ringing loudly.
When the renewed lease was issued by the solicitor we had managed to secure a healthy 3+3+3 new term. Great. But not so great was the nasty kicker of a 78% increase in rent. That right there was the effective end of the sale of depo8. The sale was dead.
Two months later, March 2020, the world went into a global meltdown. COVID-19 was spreading. Fast. Our members were moving out even faster. We went from 83% occupancy at the start of March and within 10 days we were at zero members.
With only 18 months to run on our current lease it was very clear we would have to close our doors for good. It was a very stressful time and one of the most difficult decisions we’ve had to make. But as social distancing laws were progressively being introduced we knew we had to decide quickly and act fast.
A call was made to the landlord to explain our situation. No customers. No income. No profit. No chance of paying rent. We have requested a surrender of the lease. The business is over.
It’s sad to say we could not push through and navigate our way around this virus.
It’s goodbye for now.
But please reach out to us. Our passion and spirit to help people in business isn’t over.
We kick on and will always work to help people, friends, family.
