Modsy shuts down design services, cutting roles and disrupting orders

Modsy ceased to offer design services, a move that comes at the cost of the team behind the effort and customers who have orders in progress.

The CEO of Modsy gave a statement when asked about the disruption of business.

We have worked hard over the past seven years to build Modsy and never expected we would have to disrupt our business. Our focus has always been, and still is, on our customers. We intend to fulfill customer merchandise orders and we are working through a process for our design service customers. We ask for your patience as we work through this plan. I hope that for many people, the Modsy story will not be defined by this turn of events, and we are truly sorry. We would like to thank our team, our designers, and our customers.

A number of questions were sent in response to the statement but have not been heard back.

Designers at the company were without a job last week after the deal to acquire the company fell through. There is no information about the potential acquisition.

Modsy is changing its name to Modsy Pro to better fit the needs of interior designers. Modsy Pro is described on the website as an online interior design software that will transform the way you do business. Users can apply for early access on the landing page.

Modsy sold interior design services on top of an artificial intelligence platform. Property owners could restyle their rooms using the company's apps. The company uses technology to recreate rooms in 3D with furniture from well known brands. Modsy and partner tools could be used to purchase furniture, whether it be a rug, couch, coffee table or something else.

Modsy had customers take photos and take a style quiz to find out their preferences and budget. Customers received virtual design plans of their rooms after Modsy forwarded this information. Customers could use a self-service tool to fine- tune their designs.

At the cost of employees and customers, the new product is being rolled out. At a time of uncertainty, it comes as well.

Customers who spoke on the condition of anonymity say that communication from Modsy has been inconsistent. One customer had been in touch with a Modsy designer for about a week. They got an email from the designer telling them about the pivot.

I would like to apologize for the sudden business pivot. Today is the last day of work for most of the people here at Modsy. A small team is staying on to help wrap things up with you. We are trying to get everyone's inquiries as quickly as possible, but please expect delays in response time. Someone might get back to you a few days later.

The personnel changes seem to have affected furniture orders. The items were in the customer's cart as of the evening of June 28. The second customer, who had been working with a Modsy designer, was told by customer support that they couldn't process their cancellation. All order processing was halted when they tried to cancel an order that wasn't scheduled to arrive until October.

The customer received an email from the support team saying they would fulfill all outstanding orders. If you want to cancel, just let us know and we will put you in a queue.

On June 5, a third customer began work with a Modsy designer. The customer got a note from their designer saying that they had been let go. Modsy's in-app chat feature was disabled when they tried to get more information.

One customer wrote in an email to Modsy's customer service that they had not received any information from the company. We haven't started yet, so I'm confused and frustrated. I chose Modsy, but we are moving into a new home, and I have a sensitive timetable that is not likely to be met.

Some Modsy customers reported that they were required to upgrade to the latest version of the mobile app in order to use it. The app was nonfunctional due to the lack of an update through the App Store.

Customers have been directed to a GOOGLE FORM to request a refund. Some customers were told they would have to wait a couple of weeks to get their money back.

The backers of Modsy were NBCUniversal and Norwest Venture Partners. The last funding round for Modsy ended in May of 2019. A number of new lines of business have been explored by Modsy over the years. The Minna Home furniture line spanned several different styles of sofas and chairs.

There was a round of layoffs at the company in the beginning of the Pandemic. The workforce reduction was attributed to an effort to maintain a sustainable business. Designers lost their jobs as a result of the April 2020 layoffs.

As global supply chains ground to a halt during the Pandemic, Modsy took a hit. Modsy has a senior director of finance and accounting who previously described shipping as a significant cost.