Overview
- Sonder officially filed for Chapter 7 liquidation in Delaware on Friday, moving to wind down operations rather than reorganize.
- In an emergency court motion, Marriott alleges Sonder threatened to shut down systems and lock out thousands of guests unless Marriott financed the wind-down.
- Marriott terminated the long-term licensing agreement on November 9 after being told liquidation was imminent, and Sonder listings were removed from Bonvoy.
- Marriott says it never operated Sonder properties or handled guest payments but emailed travelers to vacate by November 10 as reports surfaced of mid-stay lockouts and stranded guests.
- Sonder blames severe financial strain on prolonged integration challenges with Marriott, following earlier liquidity and accounting problems including a 2024 10-Q restatement.