Bird, the electric scooter company, has officially filed for Chapter 11 bankruptcy, marking the end of a tumultuous year for the company. Despite this, Bird has announced that it will continue to operate normally as it undergoes a financial restructuring process aimed at bolstering its financial position for sustainable growth in the long term.
Key Takeaway
Bird, a prominent electric scooter company, has filed for Chapter 11 bankruptcy as part of its efforts to restructure its finances and pursue long-term sustainable growth. The company will continue its operations as normal during this process.
The Rise and Fall of Bird
Founded in 2017 by former Lyft and Uber executive Travis VanderZanden, Bird quickly gained prominence as one of the leading providers of dockless micromobility platforms worldwide. The company allowed urban residents to access electric scooters and bikes for short-term use. However, despite its initial success, Bird faced significant challenges in the market, leading to a sharp decline in its stock value and market capitalization.
Chapter 11 Bankruptcy Details
With the filing of Chapter 11 bankruptcy, Bird aims to restructure its financial obligations without disrupting its day-to-day operations. The company has secured $25 million in financing from existing lenders, including Apollo Global Management division MidCap Financial, to support its operations during the bankruptcy proceedings. The ultimate objective is to sell Bird’s assets, and a bidding process will be initiated to maximize the value of the company.
