Yahoo Finance Rental Firm Sonder Taps Moelis to Help Improve Financial Health
(Bloomberg) -- Short-term rental company Sonder Holdings Inc. is exploring multiple options to strengthen its financial health with the help of Moelis & Co., according to people with knowledge of the situation, who asked not to be named discussing a private matter.
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Sonder has recently been looking to shore up its cash reserves and slash its capital expenditures, according to regulatory filings. The company previously said it wants to tackle costly leases as it looks to slow down its cash burn.
The company said it had $136.5 million of cash as of Dec. 31, compared to about $207.2 million at Sept. 30.
Representatives with Sonder and Moelis declined to comment.
On Friday, the company said it couldn’t file its quarterly results on time as it works to restate previously issued financial statements. Earlier financials shouldn’t be relied upon “due to accounting errors related to the valuation and impairment of operating lease right of use assets and related items,” the company said.
Sonder went public via merger with a blank-check company in January 2022. The company has a market capitalization of less than $50 million, down from a peak of almost $2.3 billion shortly after it went public.
The company, which competes with the likes of Airbnb Inc., sells short-term stays in both hotels and apartments. It operates around 9,000 units in more than 40 cities across 10 countries, according to its website.
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