Sonder Working with Kirkland & Ellis on Potential Restructuring

Sonder Holdings is working with Kirkland & Ellis on a potential restructuring, according to a report from Octus Credit. The hospitality company had announced last month that management and the board of directors had engaged in discussions with various financial and strategic parties regarding a potential sale, merger, or other strategic transaction.

Sonder Holdings Inc. (NASDAQ: SOND) saw its stock price surge over 50% in pre-market trading on Oct. 16, 2025, jumping from around $0.92 to approximately $1.40, according to a TS2 report. This dramatic rally follows a significant decline earlier in the week, with SOND down ~20% in the past five trading days and over 70% year-to-date . The stock’s recent volatility reflects a mix of operational improvements, financial challenges, and new strategic initiatives.

Sonder's Q2 2025 earnings report, released on Oct. 14, showed mixed results. Revenue fell 11% year-over-year (YoY) to $147.1 million, while revenue per available room (RevPAR) jumped 13% YoY to $184 . Occupancy rate climbed to 85.5%, up 6.2 percentage points from a year ago . However, the company reported a net loss of $44.5 million, a significant swing from the previous year’s net profit of $32.7 million .

The company also announced a partnership with TreviPay on Oct. 15 to launch “Sonder Billing,” a 30-day net invoicing program for corporate travelers . This initiative, rolling out in the US, Canada, and UK, allows business clients to book stays without upfront payment, aligning with corporate demand for flexible billing . The partnership aims to boost Sonder’s corporate appeal.

Amid these developments, rumors of Sonder’s potential restructuring have surfaced. Octus Credit reported that Sonder is working with Kirkland & Ellis on a potential restructuring, following discussions with various financial and strategic parties regarding a potential sale, merger, or other strategic transaction .

Despite the recent stock surge, Sonder’s financial health remains precarious. The company’s net margins are deeply negative (-52%) and liquidity is tight (current ratio 0.25) . Analyst sentiment is cautious, with many downgrading the stock due to concerns over liquidity and survival . However, the stock’s extreme overselling, as indicated by its RSI hitting ~19, may be spurring speculative buying and hopes of a turnaround .

The question for investors is whether this week’s developments mark the beginning of a sustainable turnaround for Sonder or just a temporary pop in a troubled stock. The company’s ability to execute its strategic initiatives and navigate its financial challenges will be crucial in determining its future trajectory.