Bird, the electric scooter pioneer, has filed for bankruptcy

Bird Globala pioneering company in the rental of e-scooters on the street, she went bankrupt. After months of drifting aimlessly, the company filed for Chapter 11 bankruptcy protection in a Florida court. The economic crisis and regulation in several countries were key to its decline.

In accordance with Financial Timescompany will begin its financial restructuring with the support of a group of creditorss. Bird listed assets and liabilities ranging from $100 million to $500 million. The goal is to raise $414 million and complete the sales process within a period of 90 to 120 days.

Bird said it has sufficient liquidity to meet its financial obligations to partners, vendors, contractors and city employees during and after the restructuring process. all this time The company will operate as normal and maintain the service passengers and fleet managers.

“We are moving towards profitability and intend to accelerate that progress by right-sizing our capital structure through this restructuring,” mentioned Bird Interim CEO Michael Washinushi. “We remain focused on our mission to make cities better for living by using micromobility to reduce car use, traffic and carbon emissions.”

Bird bankruptcy comes at a time when electric scooters have lost their relevance. The company has laid off dozens of employees and exited several countries during 2022. Paris has banned scooter rentals after its residents complained about the chaos caused by its abandonment in the streets.

Bird, from star to failure in just five years

Smart pavement protection on the Bird electric scooter
Credit: Bird

Five years after it happened the fastest business to reach a $1 billion valuation, Bird faces a restructuring process. The micromobility company suffered the effects of the economic crisis as well as a series of regulations that accelerated its exit from several markets in the last two years.

The the pandemic was a turning point for BirdWHO was forced to lay off 30% of its employees and stop operations in cities such as Barcelona, ​​Madrid, Seville and others. Although the company tried its luck in 2021 with starting the bicycle electric, he could never recover.

It was learned in November 2022 Bird inflated his accounts for two years. In a document filed with the United States Securities and Exchange Commission, the company accepted this added unpaid trips to their income reports. For this reason, the audit committee determined that the financial reports covering the first quarter of 2020 through the second quarter of 2022 should not be relied upon.

Now Bird faces a new challenge, which its management sees as an “important milestone” in its transformation. Chapter 11 protects a company from its creditors while it develops a plan to pay them. The company mentioned it Bird Europa is not part of this presentation and will continue normal operation.

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