Sonder Holdings (NASDAQ: SOND) Shares Plunge 66.67% as Chapter 7 Liquidation Follows Marriott Collapse

The share price dropped to a record low this month, with an intraday decline of 66.67%.

Sonder Holdings Inc. (NASDAQ: SOND) initiated Chapter 7 liquidation for its U.S. operations on Nov. 10, 2025, following the collapse of its partnership with Marriott International and chronic financial distress. The termination of the licensing agreement with Marriott—announced the prior day—accelerated the stock’s freefall, erasing nearly all shareholder value. The partnership, intended to integrate Sonder’s properties into Marriott’s global network, faced unresolved technical and operational challenges, leading to a “sharp revenue decline” and liquidity exhaustion. The company, which had shuttered 25% of its short-term rental portfolio in 2024, reported a 236% year-over-year increase in net losses and a current ratio of 0.25, signaling insolvency.

Sonder’s collapse reflects broader risks in SPAC-driven valuations and asset-heavy business models. The firm’s 2022 SPAC merger fueled a $2.2 billion peak valuation, but its reliance on speculative capital and unprofitable unit economics proved unsustainable. Post-pandemic shifts toward private accommodations and regulatory pressures further strained its urban-centric strategy. The liquidation underscores investor disillusionment with “growth-at-all-costs” narratives, as Sonder’s failure to diversify revenue or secure partnerships left it vulnerable to market realities. Competitors like Airbnb and traditional hotels may benefit from reduced competition, while regulators could tighten oversight of short-term rental operators. For investors, Sonder’s demise highlights the perils of overvalued, capital-intensive ventures lacking sustainable profitability.

{}