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Sonder Shuts Down After Marriott Split, Plans Chapter 7 Liquidation

Sonder cites costly failures to integrate with Marriott’s reservation network as the reason for its liquidation.

Overview

  • Marriott terminated its licensing deal with Sonder on November 9, removed the company’s listings, and said the move followed Sonder’s default.
  • Sonder announced an immediate wind-down and said it expects to file for Chapter 7 bankruptcy to liquidate its U.S. assets, with insolvency steps also planned abroad.
  • Guests reported abrupt cancellations and orders to vacate with little notice, including accounts of belongings packed and left in hallways.
  • Closure notices posted at properties direct travelers with reservations to Marriott Customer Care, and Marriott says it will contact customers who booked through its channels to minimize disruption.
  • Sonder operated in more than three dozen cities worldwide and listed about 1,400 employees, leaving properties and workers facing immediate impacts from the shutdown.