Business Insiderยท2025-11-10 21:19Core Viewpoint - Sonder Holdings, a short-term rental firm, announced it will wind down its US operations following the abrupt termination of its partnership with Marriott, leading to plans for Chapter 7 liquidation and insolvency proceedings in other countries [1][3]. Group 1: Company Operations - The company plans to file for Chapter 7 liquidation of its US business and initiate insolvency proceedings in other countries where it operates [1]. - The interim CEO, Janice Sears, expressed devastation over the decision to liquidate, indicating it was the only viable path forward [1]. - The decision to wind down operations was influenced by unexpected challenges and delays in the partnership with Marriott, which was intended to facilitate direct bookings for Marriott Bonvoy members [2][3]. Group 2: Financial Impact - The challenges faced by the company resulted in a substantial and material loss in working capital, prompting the exploration of strategic alternatives before deciding on liquidation [3]. - Following the news of the partnership termination, Sonder's shares plummeted 60%, closing at $0.20 per share, down from a valuation of $1.925 billion when it went public in 2022 [5]. Group 3: Customer Impact - The abrupt end of the partnership left travelers, including those with ongoing reservations, scrambling for new accommodations, highlighting the immediate impact on customers [3][4].