Italy: Milan-based short-term rental property management company Halldis S.p.A. has filed for administration at the Court of Milan.
The company, which manages more than 1800 properties across 20 destinations in Europe on behalf of private and institutional owners, and is one of Italy’s largest short-term rental property management firms, sought the agreement to ensure solvency towards its creditors under Article 61 Paragraph Six of the Bankruptcy Code, as well as protect the business’ long-term future.
Accommodating both business and leisure travellers, Halldis has encountered financial difficulties over the last few years, but these have worsened in recent months due to the Covid-19 outbreak, which has already ravaged large swathes of businesses in the global travel sector. The pandemic has already precipitated a drop off in international visitors, which the country’s tourism sector relies heavily on, as well as a shift to remote working.
Dating back to 1986, Halldis started life as Windows on Italy, a regional agency for period properties in Tuscany, founded by Leonardo Ferragamo. In 2002, Pietro Martani founded Halldis in Milan, the first entrepreneurial activity in Italy dedicated to the management of apartments for short-term rental, and in 2004 Halldis set up in Paris, its first overseas destination.
In 2017, it underwent a rebranding to Halldis S.p.A., off the back of a development boom, or ‘Expo effect’, from the Milan World Expo in 2015.
The Expo, according to Hospitality News, led to many companies being formed which were “poorly structured and still in the startup phase”, and which required more rethinking about their long-term strategies in order to adapt to uncertain economic times like these.
In the current situation, Halldis’ senior team considered filing for administration to be the most effective solution to protect the business’ future and its workers.
The Court of Milan is believed to be able to grant a concordat which would control the restructuring of the company to emerge from administration. In compliance with the par condicio creditorum, it is aiming to preserve its “intangible” assets, which include its contract portfolio, IT platform, experience in the sector and market positioning .
Halldis managing director Leonardo Pagni told Quality Travel: “We have made a choice that at the same time gives clarity to the market and offers an effective tool to restart to protect the stakeholders, especially employees and creditors. The aim is to guarantee the continuity of management and the maintenance of the company’s quality standards that the market has been able to appreciate over the years.
“We therefore started the preparation of a restructuring plan for the recovery of the debt exposure and the rebalancing of the financial situation, which we will present in accordance with the law and of which we will disclose future developments,” he added.
ShortTermRentalz has contacted Halldis for comment.