Travel, trust and growth: the real lesson of the Sonder collapse
🚨 Sonder, founded in 2014, filed for Chapter 7 bankruptcy in November 2025. Rapid expansion led to thousands of units across cities, including New York and Dubai. The tech-driven, asset-light model relied on long-term leases with short-term funding, leading to a $2 billion SPAC valuation in 2022. As investor tolerance waned and interest rates rose, financial strain intensified. Guests faced sudden evictions, and refunds were complex. The collapse underscores broader industry issues of trust and sustainable growth.
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