Short-term apartment-style lodging provider Domio remains open for business, according to a statement that the company posted on its website late Wednesday evening, but is in the midst of a planned "financial re-engineering" process. Technology news site The Information on Tuesday reported Domio would sell its assets and shut down operations, but Domio interim CEO Jim Mrha in an email to BTN denied the report, citing the company statement.
Still, the statement notes that the company continues to be open for business and is in the midst of a planned "financial re-engineering across all facets of its business through an assignment for the benefit of creditors process," which is what The Information reported. An ABC is an alternative to bankruptcy in which a third party oversees the sale of a company's assets.
Some properties may leave the Domio system while new properties will be added, according to the statement. Three new properties, in Bal Harbor, Miami; Grand Reserve, Puerto Rico; and Tulum, Mexico, are scheduled to open "between Nov. 1 and the end of 2020," according to the statement, which was published Nov. 18.
The statement further notes that Domio in October achieved 74 percent occupancy across its portfolio. As of June 2019, the company operated in eight cities. Its website currently lists four: Chicago, Miami, Nashville and New Orleans.
The move comes less than two months after the company's co-founders, CEO Jay Roberts and chief strategy officer Adrian Lam, resigned following an Airbnb review of Domio's practices. In August, Airbnb delisted Domio's units, but reinstated them after the co-founders departed.
The Information report also noted that Domio failed to raise at least $10 million in capital and laid off a majority of its staff earlier this month. Domio did not respond to a request for further comment.
Wednesday's statement added that "the Domio team continues to work tirelessly to serve our guests and stakeholders. Domio is grateful for their continued commitment and dedication as it works through this phase, and looks forward to serving guests for years to come."
Launched in 2016, Domio raised $100 million last December in a Series B round, bringing its funding to $170 million. When former CEO Roberts spoke with BTN in June 2019, the company had goals to expand corporate travel's share of its business beyond the 20 percent it reported at that time.
Not surprisingly, the short-term rental space has been having difficulties since the pandemic started. Domio's news comes about two weeks after BTN reported that Lyric would leave the lodging rental space by leasing its last remaining units to Mint House. Competitor Stay Alfred shut its doors in May.
RELATED: Domio Founders Resign Following Airbnb Review of Practices