HomeJoy and Handy

Homejoy Inc., a house cleaning company that also offers home repair services, as well as carpet cleaning, has filed for chapter 11 bankruptcy. HomeJoy Inc. opened for business in 2013, and was founded by brother and sister Aaron and Adora Cheung.

Filing for bankruptcy happened as a result of not enough consistent revenue due to reasons such as losing customers after raising their prices, and not being able to raise enough funding through outside investors. What really negatively impacted HomeJoy Inc., was four class action lawsuits filed against them pertaining to worker classification issues. HomeJoy just didn’t have a large enough nest egg to fight long and costly legal wars.

Handy, HomeJoy’s major competitor, on the other hand, is booming. Handy is offering their cleaning and home repair services in 25 cities in the United States, two cities in Canada and is now servicing London. Currently, the bulk of Handy’s revenue comes from the house cleaning aspect of the business. They are meticulous in what they do. They clean living rooms and bedrooms, kitchens, bathrooms and even take out the trash and recyclables. Customers may also request extras, such as cleaning inside of cabinets, cleaning the inside of ovens and refrigerators, cleaning interior windows and even taking care of the laundry duties. Handy also offers interior painting, furniture assembly, TV mounting, help with hanging shelves or pictures, handyman services and even some plumbing services.

The professional staff at Handys are thoroughly trained and must pass a vigorous background check, both on a county and national level. Handy’s employees are well compensated, averaging approximately $18 dollars per hour, and employees also enjoy flexible hours. With professional, reliable, affordable and friendly service, Handy’s booking services are skyrocketing. After two years of being in business, Handy now has over $1 million in bookings each week.

As the market in online booking for cleaning and home repair service continues to climb, the Handy’s staff are more than qualified for the job. They offer affordable pricing, are available 24/7 and guarantee their work 100 percent.

This article recapped http://blogs.wsj.com/bankruptcy/2015/12/17/home-services-startup-homejoy-files-for-bankruptcy/

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