Overview
- Sonder said it is winding down immediately and will pursue a Chapter 7 liquidation of its U.S. business, with insolvency proceedings starting in other markets.
- Marriott ended its year-old licensing agreement on Nov. 9 citing Sonder’s default and removed the brand from its booking channels.
- Travelers in cities including New York, Montreal, London, Boston and Dubai reported being told to leave with less than 24 hours’ notice, with some finding belongings packed and staff unaware.
- Marriott says it will contact customers who booked through its channels to assist with refunds or rebooking, while guests who used third parties are being directed back to those providers.
- Sonder’s asset-heavy leasing model and post-SPAC financial strain left it vulnerable, and executives say the troubled Bonvoy integration led to unanticipated costs and a sharp drop in revenue.