Source: AFP
US electric scooter rental company Bird announced Wednesday that it has filed for bankruptcy as the once-hot startup reorganizes.
The reorganization, which affects US operations but not Bird’s holdings in Europe and Canada, will involve the sale of assets, according to a press release describing a “total restructuring.”
The process aims to “better position the company for long-term, sustainable growth,” Bird said.
The company, which has grown rapidly with enthusiasm for zero-emission transport in urban environments, has reached an agreement with Bird’s existing lenders regarding the sale of assets.
The plan effectively puts a “floor” on the value of the assets as Bird pursues other buyers in a process expected to take 90-120 days, Miami-based Bird said in a press release.
Bird did not immediately respond to an AFP query seeking more details on the plan.
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Bird has received $25 million in financing from a division of Apollo Global Management to complete the reorganization.
Bird was part of a generation of scooter companies that grew rapidly in the late 2010s.
But the business began to lose its luster as the scooters often strayed outside designated areas and were involved in several accidents.
Paris, Montreal, Las Vegas and New Orleans eventually banned the vehicles, joining major cities such as Barcelona, ββToronto and New York, which had never authorized the vehicles.
Other cities imposed draconian restrictions on vehicles, further hurting revenue.
Bird in October 2022 withdrew from several markets, including Germany and Norway. He also left San Francisco earlier this year.
The company still operates in 350 cities.
First listed on the public markets in November 2021, Bird reached a peak valuation of $2.3 billion.
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But the company was delisted from the New York Stock Exchange in September as its financial problems worsened.
Source: AFP