The San Francisco-based startup Sonder, once a promising player in the short-term rental market, has officially filed for Chapter 7 bankruptcy, marking the end of a tumultuous journey that began with high hopes and venture capital dreams.

Founded by Francis Davidson, who started the company while a first-year university student in Montreal, Sonder positioned itself as a design-forward alternative to traditional hotels and Airbnb, operating in 37 cities worldwide at its peak. The company went public in 2021 with a remarkable $2.2 billion valuation, seemingly poised for continued growth.

However, a strategic partnership with Marriott International in 2024 became the beginning of the end. Technical integration challenges and unexpected costs led Marriott to terminate their licensing agreement, removing all Sonder properties from their booking channels.

The company’s financial trajectory tells a stark story of Silicon Valley volatility. Sonder’s stock price plummeted from $200 in early 2022 to under a dollar by late 2024. Leadership changes, including Davidson’s resignation in June and the CFO’s earlier departure, signaled deepening organizational challenges.

In a candid statement, Interim CEO Janice Sears acknowledged the company’s struggles, citing “substantial and material loss in working capital” stemming from their failed Marriott integration. The bankruptcy filing represents a dramatic fall for a startup that once promised to revolutionize short-term accommodations.

Sonder’s collapse serves as a potent reminder of the unpredictable nature of tech startups, where innovative ideas can quickly unravel due to operational missteps and market complexities.