Sonder Shares Battered On Decision To Wind Down Operations, Initiating Chapter 7 Liquidation Of US Business

Sonder Holdings (SOND) shares tumbled 50% by Monday afternoon after the company announced that it would immediately complete winding down its operations and expects to initiate a Chapter 7 liquidation of its U.S. business, citing several challenges that have made it difficult to keep the business afloat.

Sonder stated that it has faced severe financial constraints, arising from, among other things, prolonged issues resulting from the integration of the company’s systems and booking arrangements with Marriott International.

On Sunday, Marriott International said that it had terminated its licensing agreement with Sonder, deeming it no longer in effect. Sonder said that it also intends to initiate insolvency proceedings in the international countries in which it operates.

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