Gores SPAC’s High Redemptions Signal Worsening Sector Sentiment

Sonder Holdings Inc.’s deal to go public by merging with blank-check firm Gores Metropoulos II Inc. left investors rushing to get out of their investments, showing the industry’s issues are hitting the most experienced sponsors.

The boutique apartment-hotel firm said in a filing Monday that 96% of the special purpose acquisition company’s shareholders opted to return shares for cash, the latest example of a problem for an industry that has been in free-fall.

The average redemption rate for investors sits at 75% this month, the largest amount in the past year and a stark contrast to a 14% rate ...