US EditionSonder Announces Bankruptcy Plans; Tells Guests to Vacate Hotel Rooms: 'People Were Scrambling'
Sonder Holdings will liquidate its US business after Marriott ended their partnership, causing a substantial loss in working capital and disrupting traveler bookings, the CEO said.
- In a Monday press release, Sonder Holdings said it will file a Chapter 7 liquidation of its US business and initiate insolvency proceedings in other countries.
- Marriott International abruptly ended its booking collaboration, which preceded Sonder Holdings' decision to wind down US operations.
- Janice Sears, Sonder's interim CEO, said unexpected challenges caused a substantial loss in working capital and declared, `We are devastated to reach a point where a liquidation is the only viable path forward.`
- David Klingbeil said he received an email on Sunday telling him to vacate Sonder Flatiron by 8 a.m. on Monday, while Sonder shares plunged 60% to $0.20 per share.
- Sonder said financial losses linked to the Marriott collaboration left it unable to continue, and having explored alternatives, the firm concluded it must wind down immediately.
28 Articles
28 Articles
Pioneer Press
Sonder hotel chain abruptly closes in Twin Cities, worldwide
The Sonder hotel chain — which operates extended-stay hotels in downtown St. Paul, multiple locations in Minneapolis and at least 38 additional cities globally from Nashville to Rome — abruptly shut down Monday night following a licensing dispute with parent company Marriott Bonvoy. Marriott International issued a statement Sunday indicating that its licensing agreement with Sonder Holdings “is no longer in effect due to Sonder’s default. As a r…
SF-Based Furnished Apartment Rental Startup Sonder Shuts Down, Declares Bankruptcy
Sonder, the San Francisco-based rival to Airbnb that had established a lucrative partnership with Marriott last year, has now lost that partnership and is shutting down entirely.You may be familiar with Sonder only from a local controversy that arose in mid-2019, when it became known that the short-term rental company had taken control of a newly built residential building at Church and Market streets, which had been sold to the neighborhood as …
Hotel operator Sonder, with multiple Denver locations, ceasing operations after being dumped by Marriott
Sonder, an apartment-style hotel operator with multiple locations in Denver, is checking out. In an email sent Sunday and obtained by BusinessDen, the San Francisco-based company told local staff that it would “be ceasing US operations effective tomorrow, and non-US operations as soon as appropriate and practical.” The company said it had asked guests to vacate its properties by 9 a.m. local time on Monday. “Please know that this outcome was a l…
The chain of hotels and apartments Sonder, which signed a franchise agreement with Marriott in 2024, announced on Monday that it will complete the immediate cessation of its operations and that it will liquidate its assets under the United States Bankruptcy Act. This was reported by the company in a statement in which it has also confirmed that it intends to initiate insolvency proceedings in the countries where it operates. The release of the n…
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