Micromobility Startup Bird Files for Bankruptcy
In a move to navigate financial turbulence, micromobility startup Bird has filed for Chapter 11 bankruptcy. Despite being delisted from the NYSE in September, the company aims for a sustainable rebound, emphasizing long-term growth.
Bird, the trailblazing electric scooter company, has taken a dive into Chapter 11 bankruptcy after a rollercoaster year. Once soaring on the streets, Bird faced turbulence, culminating in its delisting from the NYSE in September. The company officially announced its financial restructuring, emphasizing a commitment to long-term, sustainable growth.
Founded in 2017 by former Lyft and Uber executive Travis VanderZanden, Bird aimed to revolutionize urban commuting with its dockless micromobility platforms. However, the ride wasn't smooth after going public via a SPAC merger in late 2021. Despite initial highs, the company's market cap plummeted, prompting warnings from the NYSE. Matters worsened as CEO VanderZanden departed in June, leading to the eventual delisting.
Bird's Chapter 11 move allows a financial facelift without interrupting daily operations, with Apollo Global Management's MidCap Financial injecting $25 million. The goal is to sell assets, with a strategic bidding process aiming to maximize Bird's value. Interim CEO Michael Washinushi steers the transformation, reaffirming the commitment to micromobility for eco-friendly urban living.
Notably, Bird's Canadian and European operations remain unaffected, ensuring continued service. This development echoes challenges faced by other players in the industry, underscoring the evolving landscape of micromobility startups.