Lodging Firm Sonder Seeks Creditor Deal to Avoid Bankruptcy

Sonder Holdings Inc., an online rental company that focuses on boutique apartments, is pursuing an out-of-court agreement with creditors in a last-ditch effort to avoid a bankruptcy filing, according to people familiar with the matter, who asked not to be identified discussing a private matter.

A media representative of Sonder declined to comment. A spokesperson for law firm Kirkland & Ellis, which is advising the company, didn’t immediately respond to an inquiry on Friday.

The company, which competes with the likes of Airbnb Inc. sells short-term stays in both hotels and apartments.

In the latest quarterly report, Sonder ...