Electric scooter company Bird files for bankruptcy – TechCrunch

Photo credit: Philippe Lopez/Getty Images

Bird has filed for Chapter 11 bankruptcy, capping a turbulent year for the electric scooter company.

In a press release today, Bird confirmed that the company had initiated a “financial restructuring process to strengthen its balance sheet” and that the company was continuing to operate as usual to pursue “long-term, sustainable growth.”

Founded in 2017 by former Lyft and Uber executive Travis VanderZanden, Bird is one of numerous startups rolling out dockless micromobility platforms around the world that allow city dwellers to pay for short-term access to electric scooters or bikes. The company went public via a SPAC merger in late 2021, but in a crowded market driven by questionable economic data, the stock took a sustained nosedive, with its market cap topping $2 billion in its debut on the New York Stock Exchange (NYSE) fell to just $70 million 12 months later. That decline prompted the NYSE to issue a warning that Bird’s stock price was too low.

Things didn’t improve, and as the stock price continued to decline, CEO VanderZanden left in June and the company was eventually delisted from the NYSE in September.

Separately, Bird announced a round of layoffs shortly after acquiring competitor Spin for $19 million.

Bird ends up on the NYSE Photo credits: Spencer Platt/Getty Images

Chapter 11

A Chapter 11 bankruptcy will allow Bird to restructure its finances without affecting day-to-day operations. Apollo Global Management’s existing lenders include MidCap Financial, which is providing $25 million in financing as part of the bankruptcy process.

The ultimate goal is to sell Bird’s assets, with a so-called “stalking horse” arrangement setting in motion a bidding process aimed at getting the most value out of Bird, with lenders setting a base bid before closing the deal open to external applicants in the next four months.

Interim CEO Michael Washinushi will continue in his role before and after the restructuring, the statement said.

“This announcement represents a significant milestone in Bird’s transformation, which began with the appointment of new leadership earlier this year,” said Washinushi. “We are making progress toward profitability and want to accelerate this progress by right-sizing our capital structure through this restructuring. We remain focused on our mission to make cities more livable by using micromobility to reduce car use, traffic and carbon emissions.”

It’s also worth noting that Bird’s Canadian and European operations are not part of this bankruptcy filing and will “continue to operate as usual,” the company said.

This latest news comes just a day after competitor Micromobility.com was delisted from the Nasdaq due to its falling stock price, three years after it also went public via a SPAC merger. And in Europe, dockless scooter startup Tier recently laid off 22% of its workforce after Dutch e-bike startup VanMoof filed for bankruptcy.

So all in all, it wasn’t a great year for the micromobility space.