"Marriott International has accused hospitality company Sonder of threatening to put thousands of guests in jeopardy unless the hotel giant bankrolled the winddown of the cash-strapped firm. In an emergency court motion filed late Friday in Sonder's Chapter 7 bankruptcy case, attorneys for Marriott said that before Sonder announced its bankruptcy plans, the short-term rental firm "attempted to leverage guest safety as a bargaining chip.""
"Marriott said in the motion filed in Delaware bankruptcy court that it ended its long-term licensing agreement with Sonder earlier this month after Sonder informed the hotel chain that it was "headed for an imminent free-fall liquidation and was about to abandon thousands of hotel guests across three continents." "As a result, Marriott had no choice but to terminate the agreement to facilitate communication with Sonder's guests, whose safety, security, and welfare would be impacted by Sonder's sudden liquidation," Marriott's attorneys wrote."
Marriott alleges that Sonder threatened to abandon thousands of guests worldwide unless Marriott financed Sonder's wind-down, warning it would shut down hotel systems and leave guests locked out mid-stay. Marriott filed an emergency motion in Sonder's Chapter 7 case in Delaware and said it terminated a long-term licensing agreement after Sonder warned of imminent liquidation and potential abandonment across three continents. Marriott stated termination was necessary to communicate with affected guests whose safety, security, and welfare could be impacted. Sonder filed for Chapter 7 liquidation and began winding down U.S. operations; Sonder representatives did not immediately comment.
Read at Business Insider
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