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Front Desk, a proptech startup that manages more than 1,000 furnished apartments across the United States, laid off all 200 employees on Tuesday. reason? TechCrunch, citing sources, said their attempts to raise more funding have failed.
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Front Desk CEO Jesse DePinto reportedly fired all employees during a “two-minute Google Meet call” Tuesday afternoon. An employee who attended the virtual meeting said he shared details of the meeting with TechCrunch.
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Front Desk CEO Jesse DePinto reportedly told employees the company would file for a state alternative to bankruptcy.
The company has not yet responded to a request for comment. TechCrunch reports that when you call the phone number on the front desk’s website, a recording says, “The front desk is currently unavailable. If you have a reservation, please find alternative accommodations for two weeks. I believe you will be contacted within the next few days.”
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The layoffs, which include full-time workers, part-time workers and contractors, come seven months after the Milwaukee, Wisconsin-based startup acquired smaller rival Zencity.
Front Desk was founded in 2017, and Crunchbase says the company has raised about $26 million from investors including JetBlue Ventures, Veritas Investments, and Sand Hill Angels.
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The report added that Front Desk launched a bridge round to pitch investors on a new plan to take control of the entire building. However, the plan did not go well and the company was unable to continue operating.
“Not only did the company fail to pay rent on many of its properties, but it also reportedly had ‘little to no contact’ with irate landlords,” the person said.
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