Update: UK’s Hostmaker filed for bankruptcy a week after insolvency speculations. Houst (formerly Airsorted) has taken over its accounts and all Airbnb bookings have been transferred to Houst.
UK-based short term rental operator Hostmaker is facing something of a cash crunch as they scramble to secure new investments in order to stave off bankruptcy.
Though the London-based startup has raised more than $30 million in two funding rounds, they have not been quite as successful at generating profits. Hostmaker has lost more than $22 million in the past two years, generating only $18 million in sales throughout 2017 and 2018.
The company has made arrangements with the UK’s High Court, who will appoint administers to initiate bankruptcy proceedings if they do not clear up their financials by March, as reported by Short Term Rentalz.
According to The Sunday Times, Hostmaker’s parent company has “filed a notice of intention to appoint administrators at the High Court, giving it ten days to resolve issues with creditors”. The report also mentions that the company is in talks with “several investors.”
The company recently made news by expanding into several new territories, including Dubai, which likely contributed to their stretched financials. They have also found themselves in hot water on several occasions, facing accusations of attempting to skirt rental rules in London and of creating “misguided” advertisements that seemed to encourage landlords to break London’s rules on short term rentals.
photo credit: hostmaker