Bird files for bankruptcy. The electric scooter maker was once valued at $2.5 billion.

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Electric scooter maker Bird Global filed for bankruptcy protection on Wednesday, a notable decline for a company once valued at $2.5 billion.

The Miami-based company filed for Chapter 11 in the United States Bankruptcy Court for the Southern District of Florida. Bird has a restructuring agreement with creditors, which includes selling assets in bankruptcy, it said Wednesday in a statement.

Apollo Global Management and second lien lenders are providing $25 million in financing to help Bird continue operating during its restructuring.

Founded in 2017 and backed by Silicon Valley investors including Sequoia Capital and Accel Partners, Bird's business grew rapidly and the company went public in 2021 through a special purpose acquisition company (SPAC).

Among Wall Street's so-called unicorns, Bird once had a market valuation of $2.5 billion. But his stock fell more than 90% in six months and his losses began to pile up.

It was delisted from the New York Stock Exchange in September after acknowledging that it had overstated its income for more than two years. Bird founder Travis VanderZanden left the company in June.

A year ago, Bird warned investors that without a cash injection, it might not be able to continue.

The company operates a short-term scooter rental business in more than 350 cities. Its Canadian and European units are not part of the process and will not be affected, Bird said in his statement.

FDNY: Brooklyn fire that killed 3 family members caused by lithium-ion battery 02:52

Electric scooters, a fun and environmentally friendly means of getting around, have lost some of their initial shine as emergency rooms. report an increase in injuries related to the products, which have also been the subject of numerous product recalls and also found that be a fire hazard.

Additionally, pedestrian complaints and safety concerns have led cities from San Francisco to New York to ban or restrict electric scooters. Paris earlier this year prohibited rental of electric scooters because cyclists abandon them on sidewalks and in parks.



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