Particle.news
Download on the App Store

Sonder to Liquidate in Chapter 7, Orders Guests to Vacate After Marriott Ends Deal

Marriott's termination over an alleged default followed months of troubled tech integration that Sonder says drained cash.

Overview

  • Sonder said it is immediately winding down operations and will pursue a court‑supervised Chapter 7 liquidation of its U.S. business, with insolvency proceedings abroad.
  • Marriott removed Sonder from its channels after declaring the 2024 licensing agreement no longer in effect due to Sonder’s default.
  • Guests in multiple cities reported being told to leave within 24 hours, with some returning to find their belongings packed and left in hallways.
  • Marriott said it will contact customers who booked through its platforms to support refunds, though several travelers said they received no rebooking help.
  • Sonder blamed delayed and costly integration with Marriott’s Bonvoy system for a sharp revenue decline, compounding losses from its asset‑heavy lease model across roughly 40 cities.