Short-term rental operator Domio shuts down
Company was unable to raise additional capital to stay in business
Short-term rental operator Domio is reportedly going out of business.
The startup, which was founded in 2016, will shut down and sell its assets through an assignment for the benefit of creditors, with Sherwood Partners overseeing the sale, The Information reported.
The company laid off the majority of its staff earlier this month after failing to raise $10 million in additional capital, according to the outlet.
“Unfortunately, conditions precedent to close this round were not achieved,” the company wrote in a note to its investors. It noted cryptically that “there is a scenario where Domio is able to operate,” but offered no specifics.
Domio has been under scrutiny for several months. In August an investigation by the Information found that Domio would rent out its short-term apartments under pseudonyms via Airbnb. After the report, Airbnb suspended all of Domio’s accounts for violating its terms of service.
The company’s co-founders, CEO Jay Roberts and Chief Strategy Officer Adrian Lam, resigned from their posts and stepped down from the board of directors in late September.
The company’s decision to shed its assets comes shortly after the Related Group and its partner, Black Capital Group, put out feelers to sell the 175-unit Domio Wynwood in Miami, where the short-term rental operator has a 10-year master lease agreement. The owners are looking to sell the asset at a whisper price of $90 million. The Related Group did not immediately return a message seeking comment.
[The Information] — Akiko Matsuda