The electric scooter company Bird has filed for bankruptcy protection.
The company has engaged in a "stalking horse" agreement, establishing a minimum value for Bird, with its existing lenders, as stated in a press release. Bird plans to utilize the bankruptcy process to facilitate the sale of its assets, a transaction it anticipates completing within the next 90 to 120 days.
Bird's electric scooters gained popularity as an eco-friendly alternative to traditional transportation methods, securing over $275 million in funding in 2019 and reaching a valuation of $2.5 billion. However, the COVID-19 pandemic led to a significant decline in ridership as lockdowns were imposed in 2020, and Bird struggled to recover. In 2021, the company went public through a merger with a special purpose acquisition company, but its share price experienced a decline.
The bankruptcy filing follows the delisting of Bird from the New York Stock Exchange in September, as it failed to meet the exchange's requirements, including maintaining a market capitalization above $15 million for 30 consecutive days. After being delisted, Bird's shares began trading on the over-the-counter exchange, with the stock price falling to less than $1 per share as of Wednesday.
It's important to note that Bird Canada and Bird Europe are not included in the Wednesday filing and will continue their operations unaffected, according to the release.
