Bird, once a promising name in the electric scooter industry, has officially filed for Chapter 11 bankruptcy protection, putting the company’s future in doubt.
CNBC reports that Bird, the electric scooter company valued at $2.5 billion by investors, has filed for Chapter 11 bankruptcy protection in a Florida federal court. The announcement came as a stark turn of events for the company, which was once a symbol of modern urban transportation. Bird’s electric scooters, advertised as an environmentally friendly alternative to traditional driving and public transit, gained rapid popularity before the onset of the coronavirus pandemic. In 2019, Bird raised over $275 million, boosting its valuation to $2.5 billion.
electric scooters on the move (Getty/FRANCOIS GUILLOT)
However, the company faced severe challenges during the pandemic as lockdowns led to a dramatic reduction in scooter rides. Despite going public through a merger with a special purpose acquisition company (SPAC) in 2021, Bird struggled to regain its pre-pandemic momentum, with its share price plummeting significantly.
In its bankruptcy filing, Bird revealed plans to sell its assets within the next 90 to 120 days, under a “stalking horse” agreement with its existing lenders, setting a minimum value for the company’s assets. Companies often do this as part of a strategic approach to handling financial difficulties while attempting to preserve some value for its stakeholders.
The bankruptcy proceedings do not include Bird Canada and Bird Europe, which will continue their operations as usual. Meanwhile, Bird’s shares have been trading on the over-the-counter exchange at less than $1 per share, following its delisting from the New York Stock Exchange in September due to failure to meet the exchange’s requirements.
Multiple cities around the world have soured on electric scooters, which are typically rented and left on the street. Paris, France, banned electric scooters earlier this year. As Breitbart News reported:
One thing they will soon not have to worry about however is being run over by a rented electric scooter, with a city-wide referendum on banning the method of transport passing with flying colours on Sunday.
According to a report by the Associated Press, around 89 per cent of voters who turned out to the referendum voted to ban the vehicle, despite attempts to stack the deck from rental agencies, who offered Parisians free scooter trips on the day of the ballot.
“Parisians have massively expressed themselves against keeping shared e-scooters,” Paris Mayor, Socialist Party politician and anti-scooter campaigner Anne Hidalgo declared upon the passing of the referendum, which — despite not being legally binding — she says she fully intends to abide by.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.