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Industry News from INSOL Europe
17 November 2025
Sonder, a short‐term rental company once valued at nearly $2 billion, is filing for Chapter 7 bankruptcy and liquidating its U.S. operations after its partnership with Marriott International collapsed.
The deal, struck in August 2024, aimed to integrate Sonder’s properties into Marriott’s booking systems - but delays and integration issues led to a major revenue drop and working‐capital losses.
Guests staying at Sonder properties booked through Marriott, in Europe and around the world, were abruptly told to vacate after the licensing agreement ended on November 9 2025. The fallout has exposed the risks of rapid expansion and complex hotel-rental tie-ups in the hospitality industry.
13 November 2025
The Romanian government, the principal creditor of the financially distressed Liberty Galati steel mill (part of Liberty Steel Group), has reversed its stance and agreed to sell the company's core assets separately via an international auction.
This decision, a shift from an initial push for a sale of the entire company, aims to expedite the liquidation process, cover debts to secured creditors and employees, and address a large portion of the $1.2 billion in total liabilities. The core assets are valued between $400 million (liquidation price) and $800 million (market price).
This move comes as the steel mill operates under a pre-insolvency procedure. Interested bidders reportedly include Ukrainian billionaire Rinat Akhmetov's Metinvest and local Romanian road construction magnate Dorinel Umbrărescu.
08 November 2025
Baltika, an Estonian clothing company with a history spanning nearly a century, has filed for bankruptcy after years of financial struggles. The decision follows a failed restructuring attempt and the cumulative impact of tough economic conditions in the Baltic retail market.The move results in the layoff of 120 employees across its operations in the Baltics, in Estonia, Latvia and Lithuania, as the company prepares for a gradual closure of its retail stores.
While the wider company faces liquidation, Baltika's parent company, ELG, retains ownership of the last remaining brand, Ivo Nikkolo and says that it may attempt to revive the Ivo Nikkolo brand via wholesale and e-commerce in other European markets in the future.
Read more at Baltic News
02 November 2025
Petrofac, a major UK-based oil and gas contractor with about 7,300 employees globally, has filed for administration, endangering more than 2,000 jobs in Scotland, particularly around its North Sea operations. The ultimate holding company applied to the High Court following the cancellation of a crucial offshore wind contract by European grid operator TenneT due to the firm's failure to meet its obligations. This setback made a planned solvent financial restructuring impossible.
Petrofac's struggles are rooted in years of issues, including a 2021 conviction for failing to prevent bribery and high debt (up to $4 billion). While the administration only applies to the holding company and UK operations continue for now, the move casts doubt over the future of the entire group. The UK government is coordinating support for the company's domestic arm, hoping to secure its long-term future.
Reported here in The Guardian
31 October 2025
Waterline Limited, one of the UK's largest independent kitchen and bathroom distributors, founded in 1947, has entered administration and will be wound down after a search for a buyer failed. The company, which had seen strong growth in 2021 and 2022, declined sharply due to a drop in consumer spending on home improvements, high interest rates, and the cost-of-living crisis. Waterline reported a £2.2 million operating loss in the year to March 2024, down from a profit the previous year.Joint Administrators from Leonard Curtis were appointed on October 9 and, while there was interest in the company's stock and IP, no buyer was willing to take on the business as a going concern.
This collapse highlights the challenging economic pressures facing the UK construction and retail supply chain.
Read the full report at Business Sale Report here