"The short-term rental firm filed for Chapter 7 liquidation proceedings in federal bankruptcy court in Delaware on Friday. In a legal filing, Sonder listed its estimated assets as between $1 billion and $10 billion and its estimated liabilities as between $1 billion and $10 billion. Sonder announced its bankruptcy plans earlier this week, saying it would immediately wind down its US operations after Marriott abruptly ended its licensing agreement with the company - a move that sparked chaos and confusion for blindsided guests."
"Sonder, a firm once valued at over $1 billion, said it "faced severe financial constraints arising from, among other things, prolonged challenges in the integration of the Company's systems and booking arrangements with Marriott International." The short-term rental company said it "made comprehensive efforts to evaluate all financing and other strategic alternatives, including a sale of its business and operations, to improve its financial condition," but was "unable to execute a viable going concern transaction for its business and operations or obtain additional liquidity.""
Sonder filed for Chapter 7 liquidation in federal bankruptcy court in Delaware, listing estimated assets and liabilities between $1 billion and $10 billion. The company will immediately wind down its US operations after Marriott terminated a licensing agreement, and will initiate insolvency proceedings in other countries. Sonder faced severe financial constraints tied to prolonged challenges integrating systems and booking arrangements with Marriott. The company evaluated financing, strategic alternatives, and possible sale but could not secure a viable going-concern transaction or additional liquidity. Sonder operated thousands of short-term rental units and offered an online booking platform since its 2014 launch.
Read at Business Insider
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