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Francis Davidson resigned as CEO and left the board of directors effective June 24, Sonder disclosed Thursday in a regulatory filing.
Janice Sears, who joined the company's board in 2022 and was named chairperson in January, was named interim CEO. Sonder operates apartment-style and boutique hotel units in 10 countries.
Davidson’s “entrepreneurial spirit and visionary leadership have made Sonder into the global company and recognizable brand it is today,” Sears told Hotel Dive.
The change in leadership comes nearly a year after Sonder entered into a licensing agreement with Marriott International, adding some 9,000 Sonder rooms to the Marriott Bonvoy platform and Marriott's booking website.
Sonder went public via a special purpose acquisition company merger in 2021 at a $1.9B valuation and trades on the Nasdaq. Its stock initially traded at around $200 per share, but it has lost roughly 99% of its value after the company identified accounting errors in 2022 and 2023 financial statements. Sonder is facing a class action fraud lawsuit from its investors over the issues.
Its troubles have persisted. Last month, Nasdaq informed Sonder that it was in violation of its listing rules for its delay in reporting its first-quarter earnings. Its shares were up 2% Thursday afternoon after Davidson's resignation was announced, although the price is still down 56% on the year.
“I am incredibly proud of the brand Sonder has become since we launched the company just over a decade ago. With the foundation that we have built, I know it will be an exciting next chapter for Sonder fueled by growth, innovation, and delighting our guests every day,” Davidson told Hotel Management in a statement. “I have worked closely with Janice over the years and believe that she is best positioned to lead as interim CEO.”
Davidson will receive more than $2.2M in cash as part of his severance package, according to the filing.
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