Sonder Holdings (SOND) plummets 25.00% to record low as Marriott terminates licensing deal triggering Chapter 7 liquidation

The share price of Sonder Holdings (SOND) dropped to a record low on Nov. 13, with an intraday decline of 25.00%, marking the deepest single-day fall since the company’s listing.

The collapse follows the termination of its licensing agreement with Marriott International on Nov. 9, which had been central to its rebranding strategy under the “Sonder by Marriott Bonvoy” banner. Marriott cited a “default” by Sonder, leaving the company without access to a critical distribution channel and revenue stream. Integration challenges with Marriott’s systems had already strained Sonder’s liquidity, compounding its financial instability. The firm later announced Chapter 7 liquidation of its U.S. operations and insolvency proceedings globally, effectively ending a decade-long presence in the hospitality sector.

The failure to secure additional financing or strategic alternatives further eroded investor confidence. Despite efforts to explore a sale, Sonder’s board concluded no viable path to recovery existed. Immediate operational shutdowns at 38 cities, including Minneapolis, Nashville, and Rome, disrupted guests and accelerated liquidity pressures. The company’s historical struggles—marked by declining valuations since 2022 and reliance on external partnerships—highlighted a fragile business model. The abrupt collapse underscores the risks of over-reliance on third-party collaborations in capital-intensive industries, offering a cautionary tale for investors and peers alike.