Little Tokyo Two placed into voluntary liquidation
Written on the 12 April 2019 by David Simmons
Serial entrepreneur Jock Fairweather's (pictured) incubator and co-working space Little Tokyo Two (LT2) has been placed into voluntary liquidation.
The four-year-old project has apparently suffered from new competition in the space, leading Fairweather to announce the liquidation of the business.
In a letter to supporters Fairweather sadly farewelled the project.
"Little Tokyo Two started as a place where a group of friends could get together, do business and drink beers. Almost four years later, LT2 has become one of the largest and most dynamic communities of entrepreneurs, innovators and creators in South East Queensland," says Fairweather.
"Despite the success of our incubation process the business of running a co-working space has been struggling, with increased competition in the market and new entrants, who under cut prices to attract new members. After stress testing our future financial model and the financial difficulty, we have recently faced we have concluded that the viability of the LT2 as a co-working space is an unsustainable option for our future."
"It has been an amazing journey working with all of the incredible and talented community in South East Queensland. I sincerely apologize to everyone that has been impacted by this change, and I wish you every success in the future."
Earlier in 2019 Fairweather detailed the "future" of LT2 on LinkedIn one with a prioritised focus on supporting businesses rather than managing co-working spaces.
"What we have truly learnt - is that where we really deliver value and change lives is through helping businesses hire the right people at the right time, finding $10,000 for a same-day loan so that the company doesn't go liquid overnight and developing hedging strategies for volatile B2C companies by closing a big BD deal," says Fairweather.
"Where we do no NOT deliver value is by spending a whole day figuring out how to fix the Aircon or find a bolt that's come out of a chair."
As part of that announcement Fairweather detailed how 42 development plans for early, growth, and scale stage startups were on offer with LT2. It is unclear how those who picked up one of these new plans in February have been impacted by the shock liquidation.
Business News Australia
Author: David Simmons