Alternative accomodation provider Sonder Holdings Inc (NASDAQ: SOND) late Monday announced plans to file for bankruptcy, a day after Marriott International Inc (NYSE:MAR) terminated a licensing agreement between the two companies.
In a statement on Sunday, Marriott said the 20-year licensing deal was “no longer in effect,” citing Sonder’s “default” as the reason.
In August 2024, an agreement was signed that allowed Sonder hotels to be booked via Marriott’s Bonvoy website.
“We are devastated to reach a point where a liquidation is the only viable path forward,” Sonder Holdings interim CEO Janice Sears said in a statement.
“Unfortunately, our integration with Marriott International was substantially delayed due to unexpected challenges in aligning our technology frameworks, resulting in significant, unanticipated integration costs, as well as a sharp decline in revenue arising from Sonder’s participation in Marriott’s Bonvoy reservation system.”
Sonder, which operates in 40 cities worldwide, was billed as a blend between Airbnb and hotels, offering long-term stays in tech-enabled properties popular with remote workers.
Sonder Holdings shares sank 20% to $0.16 in early trading on Tuesday.