bird Submitted Under Chapter 11 Bankruptcy Codecapping off a turbulent year for the electric scooter company.
in press release Bird confirmed today that it has entered a “financial restructuring process aimed at strengthening its balance sheet” and that the company is continuing business as usual in pursuit of “long-term, sustainable growth.” Announced.
Founded in 2017 by former Lyft and Uber executive Travis VanderZanden, Bird is one of many startups deploying dockless micromobility platforms around the world, helping city dwellers take short-term access to electric scooters and e-bikes. You will be able to pay for access. The company went public in late 2021 through a SPAC merger, but its stock price plummeted permanently in a crowded market built on questionable economics, and its market capitalization was $2 billion at its New York Stock Exchange (NYSE) debut. It has fallen since then. Just up to $70 million 12 months later. The decline prompted the New York Stock Exchange to issue a warning that Bird’s stock price was too low.
Things didn’t improve, the stock price continued to fall, and CEO VanderZanden eventually stepped down in June. Delisted from NYSE During September.
Separately, Bird also announced a series of layoffs shortly after acquiring rival Spin for $19 million.
Bird lands on New York Stock Exchange image credits:Spencer Pratt/Getty Images
Chapter 11
The Chapter 11 bankruptcy will allow Byrd to restructure its finances without disrupting its day-to-day operations, with existing lenders MidCap Financial, a division of Apollo Global Management, providing $25 million in financing through the bankruptcy process. will be provided.
The ultimate goal is to sell Byrd’s assets, and so-called “horse racing” agreements begin a bidding process aimed at extracting as much value as possible from Byrd, with Byrd’s lenders being Set a baseline bid before starting a deal with a potential suitor. over the next four months.
Interim CEO Michael Wasinusi will continue in his role both before and after the reorganization, the statement said.
“This announcement represents an important milestone in Bird’s transformation, which began with the appointment of new leadership earlier this year,” Washinushi said. “We are making progress towards improving profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring. We remain focused on our mission to make cities more livable by reducing volume, traffic and carbon emissions.”
It’s also worth noting that Bird’s Canadian and European operations are not included in the bankruptcy filing, and the company says it will “continue to operate as usual.”
This latest news comes just one day after rival MicroMobility.com was delisted from the Nasdaq due to low stock prices, and three years after the company also went public through a SPAC merger. And in Europe, dockless scooter startup Tia recently laid off 22% of its workforce following bankruptcy proceedings for Dutch e-bike startup VanMoof.
Overall, it hasn’t been a great year for the micromobility space.
Source: techcrunch.com
