Electric scooter company Bird files for bankruptcy

Share


He Bird electric scooter company said on Wednesday that it had filed for bankruptcy protectionanother sign that the shine on this once bustling part of personal transportation has begun to fade.

To help it continue operating, the company said, it had secured $25 million in financing from Apollo Global Management's commercial lending unit, MidCap Financial, and the company's second lien lenders. Michael Washinushi, Bird's interim chief executive, will remain in his role as the company pursues a turnaround plan that could involve asset sales.

Birdbased in Miami, there was warned investors a year ago that, unless it raised cash, it might not be able to “continue as a going concern.”

Other startups in the sector have had problems. Micromobility.com, formerly known as Helbiz, was removed from the list from Nasdaq on Tuesday; and another rival, Tier Mobility, had its third round of layoffs last month.

Birdone of the faster startups to reach a billion-dollar valuation and become a so-called unicorn, it has long positioned itself as a partner in helping cities go green. It was started in 2017 and expanded rapidly, fueled by big-name Silicon Valley investors including Sequoia Capital and Accel Partners. It raised more than $500 million in venture funding and went public in 2021 after merging with a shell corporation known as a special purpose acquisition company, or SPAC.

But Bird's losses piled up. and the company was removed from the list from the New York Stock Exchange in September. This came after he admitted to the Securities and Exchange Commission that he had overstated his income for more than two years; its founder, Travis VanderZanden, left in June.

Bird scooters can be found in more than 350 cities, from Rome to San Francisco. (The company's Canadian and European businesses are not part of the bankruptcy, Bird noted, and will continue to operate as normal.)

Has been Many complaints about abandoned rental scooters cluttering sidewalks and parks in recent years. Paris prohibited rental of electric scooters This year, for the first time in a European capital, although it still allows privately owned electric scooters.



Source link
Share

Leave a Reply

Your email address will not be published. Required fields are marked *