Sonder Implodes, BlackRock Largest Equity Holder

Short term rental provider and Marriott partner Sonder Holdings declared Chapter 7 bankruptcy.  Company auditor Delloite & Touche issued a going concern warning on Sonder in July 2025.  Around the same time an employee posted this on Glassdoor: 

This job started off easy and manageable, even with some clunky internal systems. But since the company was acquired by Marriott (rebranded as a “partnership” to avoid properly compensating employees), everything has gone downhill. The systems we use to do our jobs have become harder and more frustrating. 

But the real problem is the toxic, unaccountable management at both the direct and upper levels. We are now expected to juggle multiple roles — front desk, housekeeping, minor maintenance, billing, emails, live chat, in-person guest interactions, and more — all without proper training or increased pay. Management gaslights you into thinking this is normal and acceptable. When you push back, they deflect responsibility and create new rules on the fly to wear you down. The strategy is clear: overwork and exhaust the team to make us easier to manipulate. They even force you to stand for your entire shift now, as if the emotional labor wasn’t enough. 

Raises? You get a 60¢ “increase” as part of this Marriott shift — a complete slap in the face given how much more they demand from us. If you voice concerns, you’re told to be grateful or start looking elsewhere. 

The CEO “stepped down” to pursue other things, but let’s be real — this was always a sellout move. He cashed in and left the front-line workers to deal with the fallout. If you’re informed, strong-willed, and unwilling to be a pushover — you’ll be targeted. 

Sonder used to be a promising brand. But now, it feels like Marriott is draining it for all it’s worth before phasing it out completely. 

Bottom line: This job is not worth your mental health. Management doesn’t respect that you have a life outside of work. They will treat you as disposable — and expect gratitude in return. 

Advice to Management:   Prepare to be treated by the company the same way you've treated us; everyone's time comes.

Sonder began as Flatbook in 2014.  It changed name in 2016.  Sonder became public via an SPAC in 2021, valued at $2.2 billion.  Prequin reported the following sponsors:

The Gores Group, alongside Atreides Capital, BlackRock, Fidelity Investments, Moore Capital Management - Private Equity, Principal Global Investors, and Senator Investment Group

Several are private equity underwriters (PEU).  The PEU/TechGod playbook is embedded in that employee review.  Crappy technology, toxic management/executives, poor pay/benefits, excessive hours worked, top execs cashing out (getting all the rewards), no ability to move up and financial sleight of hand given the company never got close to being cash flow positive (even on an adjusted basis).  That's thirteen years of massive operating losses.  

The Real Deal noted:

....the company disclosed financial reporting errors affecting 2022 and 2023 statements

BlackRock took a number of hits on the debt side from recent bankruptcies.  Their Sonder losses are equity related, but I imagine it stings similarly.