"Back in 2019, Sonder was flying high. The short-term rental company had a whopping $1.1 billion valuation and a plan to bring its tech-meets-hotels model to millions of travelers. It marketed itself as an upscale alternative to Airbnb. But just six years later, the San Francisco company is going belly-up - and leaving guests out to dry. Sonder announced in a Monday news release that it is immediately shutting down and will soon file for bankruptcy."
""We are devastated to reach a point where a liquidation is the only viable path forward," interim CEO Janice Sears said in the news release, adding that the company's deal with Marriott had been riddled with delays and unanticipated costs. When Marriott canceled the deal, it wrote that Sonder had defaulted. Sears added, in the release: "We explored all viable alternatives to avoid this outcome, but we are left with no choice other than to proceed with an immediate wind-down of our operations and liquidation of our assets.""
Sonder abruptly shut down and will file for Chapter 7 liquidation after losing a key licensing agreement with Marriott. The company previously held a $1.1 billion valuation in 2019 and positioned itself as an upscale, tech-driven alternative to Airbnb. The Marriott agreement experienced delays and unexpected costs, and Marriott reported that Sonder had defaulted. The closure resulted in travelers being evicted mid-stay and employees suddenly unemployed. Sonder had about 8,300 leased units at the end of June. Many travelers faced steep last-minute rebooking costs despite receiving refunds, and complaints surged online.
Read at SFGATE
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