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Birdhas filedfor Chapter 11 bankruptcy , capping off a roily year for the galvanizing scooter company .
In apress releasetoday , Bird confirmed that it had entered into a “ fiscal restructuring physical process aimed at strengthening its proportionality sheet , ” with the company continue to operate as normal in pursuit of “ farsighted - term , sustainable growth . ”
establish in 2017 by former Lyft and Uber executive Travis VanderZanden , Bird is one of legion startups to introduce dockless micromobility platforms around the world , allowing city - indweller to pay for little - condition access to electric scootersor bicycle . The company go public in tardy 2021via a SPAC merger , but in a crowded market build onquestionable economic science , its gillyflower went into a recurrent nose dive , with its grocery store chapiter drop from more than $ 2 billion at its New York Stock Exchange ( NYSE ) debutto just $ 70 million12 month afterwards . This declineled the NYSE to issue a warningthat Bird ’s share cost was too low .
Things did n’t improve , and with its contribution price continuing to plump , CEO VanderZandendeparted in Junewith the party eventuallydelisted from the NYSEin September .
singly , Bird also announceda daily round of layoffsshortly afterbuying rival Spin for $ 19 million .
Chapter 11
A Chapter 11 bankruptcy will enable Bird to restructure its financials without cut off day - to - Clarence Shepard Day Jr. procedure , with Apollo Global Management division MidCap Financial among existing lender providing $ 25 million in financing through the failure proceeding .
The ultimate destination is to betray Bird ’s assets , with a so - called “ stalk horse ” agreement kicking off a bid process designed to get as much value out of Bird as potential , with its lenders setting a baseline bid before open affair up to extraneous suitors over the next four months .
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Interim CEO Michael Washinushi will continue in his role before and after the restructuring , according to the assertion .
“ This promulgation represents a significant milestone in Bird ’s transformation , which began with the appointment of new leadership early on this year , ” Washinushi said . “ We are making forward motion toward profitability and train to quicken that advance by correctly - size our chapiter social system through this restructuring . We remain focused on our mission to make cities more livable by using micromobility to reduce auto usage , traffic , and carbon paper emission . ”
It ’s also worth note that Bird ’s Canadian and European operations are not part of this bankruptcy filing , and will “ continue to operate as normal , ” the company said .
This recent newsworthiness comes just a day after rival Micromobility.comwas delist from the Nasdaqover its miscarry gillyflower toll , three yearsafter it too went public via a SPAC merger . And in Europe , dockless motor scooter startup Tierrecently laid off 22%of its work force , which followed Dutch e - bike startupVanMoof ’s bankruptcy legal proceeding .
So all in all , it has n’t been a neat year for the micromobility kingdom .
