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Home-Services Startup Homejoy Files for Bankruptcy

Submitted by jhartgen@abi.org on

Homejoy Inc., a house cleaning and repairs start-up that hired David Hasselhoff to star in a commercial, has filed for chapter 11 bankruptcy, the Wall Street Journal reported today. The chapter 11 case, filed on Tuesday in U.S. Bankruptcy Court in San Jose, comes about five months after the company announced that it would be shutting down via a blog post on its website. The San Francisco venture-backed startup was founded by siblings Adora and Aaron Cheung in 2013 and allowed users to book home cleaning and repair services. Homejoy raised $38 million in venture funding from investors including Google Ventures, as well as First Round Capital, Redpoint Ventures and others. Until July, the company was offering $25-an-hour house cleaners in five countries, as well as expanding into home repairs and carpet cleaning.