Sonder Seeks Creditor Deal to Avoid Bankruptcy Amid Liquidity Concerns

Sonder Holdings, an online rental company, is seeking an out-of-court agreement with creditors to avoid bankruptcy. The company has $1.5 billion in liabilities and $1 billion in assets, raising concerns about its ability to continue as a going concern. Sonder is reviewing its lease portfolio and working with AlixPartners and Moelis & Co. to explore financial options.

Sonder Holdings Inc., an online rental company specializing in boutique apartments, is currently pursuing an out-of-court agreement with creditors to avoid a potential bankruptcy filing. According to a Bloomberg report, Sonder is in talks with creditors to reach a deal that would prevent the company from declaring bankruptcy.

The company, which competes with the likes of Airbnb Inc., has been experiencing financial strain. In its latest quarterly report, Sonder disclosed that its liquidity may be insufficient to meet its obligations, raising substantial doubt about its ability to continue as a going concern. As of the end of June, Sonder has around $1.5 billion in liabilities and $1 billion in assets, the Bloomberg report said.

Sonder is taking several steps to address its financial challenges. The company is reviewing its lease portfolio and has been working with AlixPartners LLP for operational help. Additionally, Sonder has hired Moelis & Co. to explore financial options, according to the Bloomberg report.

Despite these efforts, Sonder's stock has been volatile. On Oct. 16, 2025, Sonder's stock surged over 50% in pre-market trading, jumping from around $0.92 to roughly $1.40. This rally came after a steep decline earlier in the week, with the stock down nearly 20% in the past five trading days and over 70% year-to-date, according to a TS2 Tech article.

Sonder's Q2 2025 earnings report, released on Oct. 14, showed mixed results. While revenue per available room (RevPAR) increased by 13% year-over-year, revenue fell 11% to $147.1 million. The company also reported a net loss of $44.5 million, a swing from a $32.7 million net profit in the previous year, the TS2 Tech article noted.

The company's financial health remains precarious. Sonder's net margins are deeply negative (-52%), and its liquidity is tight, with a current ratio of 0.25. Analyst sentiment around Sonder's stock is cautious, with many downgrading the stock and removing price targets, the TS2 Tech article added.

Investors are hoping that Sonder's new partnership with TreviPay and integration with Marriott's platform will help turn the company's fortunes around. However, the question remains whether these developments mark the beginning of a sustainable turnaround or just a temporary pop in a troubled stock.