A San Francisco-based company that operates boutique hotels and premium apartments announced it will file for bankruptcy. The company has announced that it is winding down operations and will file the petition soon. The move follows ongoing financial challenges and failed attempts to secure alternative funding.
Sonder Holdings Inc. Plans Chapter 7 Bankruptcy Filing
Sonder Holdings Inc. has announced that it will be filing for Chapter 7 liquidation of its U.S. businesses. The company is winding down U.S. operations and plans to close its international locations as well. This announcement comes after Marriott International announced the termination of its licensing agreement with Sonder.
Started in 2014, Sonder offers thoughtfully designed accommodations and innovative service to provide a seamless experience. Sonder operates properties in 37 cities across nine countries, offering accommodations for modern travelers.
The company is now shutting down all operations following financial struggles. After Marriott International ended its licensing agreement, Sonder could no longer sustain operations. It will now focus on repaying creditors by selling assets and stopping operations.
The liquidation of the business will proceed formally and under court supervision. Interim CEO Janice Sears described the decision as difficult and expressed gratitude to employees, guests, and partners for their support.
Licensing Agreement Termination Leads to Bankruptcy
The announcement from Marriott International of terminating its licensing agreement came on November 9, 2025. It was followed by Sonder releasing news of its operations shutting down. Sonder was already facing financial difficulties, and one of the main problems arose from integrating its booking and technology systems with Marriott International.
Marriott was a key business partner, helping drive bookings and customer growth. Unfortunately, it ended its licensing agreement with Sonder, and the partnership fell apart. Meanwhile, Sonder tried every alternative possible to keep the business running.
The company sought new funding, explored selling parts of the business, and met with potential investors. When these efforts failed, Sonder opted for liquidation. Now, it is shutting down all operations and will sell its assets to repay creditors.
