"Hospitality is supposed to be about comfort, leisure and service, not guests using words like stranded or homeless. Yet those were the terms popping up in headlines this week as Sonder's collapse rippled through buildings around the world. The short-term rental operator, once a proptech darling and a $2 billion public company, announced it's preparing to file for Chapter 7 liquidation in the U.S., with parallel insolvency proceedings abroad. Operations ceased almost immediately."
"By the time interim CEO Janice Sears stepped in earlier this year, the company was juggling $1.5 billion in liabilities against $1 billion in assets, negotiating with creditors and watching its cash position shrink to fumes. Still, the speed of the unraveling has caught a lot of landlords and guests off guard. The final blow came last weekend, when Marriott abruptly terminated its year-old licensing agreement, pulling roughly 9,000 Sonder by Marriott Bonvoy units out of its system overnight."
Sonder is preparing to file for Chapter 7 liquidation in the U.S. with parallel insolvency proceedings abroad, and operations ceased immediately. By the time interim CEO Janice Sears took over, the company held about $1.5 billion in liabilities against $1 billion in assets, was negotiating with creditors, and faced a critically low cash position. Marriott abruptly terminated a year-old licensing agreement, removing roughly 9,000 Sonder by Marriott Bonvoy units overnight and triggering catastrophic consequences. A 20-year deal that promised $126 million and brand credibility failed amid integration tensions, reporting errors, investor lawsuits, and a fragile balance sheet. Landlords, guests and employees were left managing abandoned properties, stranded occupants, and unclear lease obligations.
Read at therealdeal.com
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