McCarter & English Partner Jeffrey Testa weighed in on Sonder’s recent Chapter 7 bankruptcy following the termination of its licensing agreement with Marriott. When speaking with the Commercial Observer, he noted the crisis affecting Sonder and its guests is not uncommon based on his experience as a trustee starting, “From day one lots of chapter 7 cases come in with some type of crisis, there was certainly a crisis here” Testa said. Jeff opined that he expected the appointed bankruptcy trustee to lead a forensic investigation into Sonder’s financial transaction and noted “These cases just take time… The investigation has to take place… these cases can take years to get to the finish line before creditors get money,” he explained. Jeff’s comments underscore the complex financial disputes and the extended timeline stakeholders, including landlords, creditors, and guests, may face in recovering any payments.
11.26.2025
