Sonder Holdings Inc., a short-term rental company once considered a rival to Airbnb, announced this week it plans to file for Chapter 7 bankruptcy protection. Employees at Sonder properties, including those in Austin, were immediately let go and customers were reportedly locked out of their rooms following the abrupt announcement.
The move came a day after Marriott International terminated its licensing agreement with the chain, which had been in place since August 2024.
The San Francisco-based company said it suffered “severe financial constraints” due to problems integrating its technology and booking systems with Marriott International.
In addition to its Austin site, Sonder held other properties in Dallas, Houston and San Antonio,…