Welcome to our new post in this post we talk about Electric Scooter Company Bird Files for Bankruptcy, Faces Challenges. The once-billionaire electric scooter startup, announced in a press release that it filed for Chapter 11 bankruptcy on Wednesday in a federal court located in Florida.
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The business, which is well-known for its chic electric scooters, has entered into a “stalking horse” arrangement whereby, over the course of the next 90 to 120 days, it will file for bankruptcy in order to expedite the sale of its assets and simplify things for prospective purchasers.
Bird said it is to be higher and better offers, and its goal is to achieve the maximum value for all stakeholders. Bird Canada and Bird Europe are not included in the filing, according to the company, and business as usual will continue.
When Did Bird Encounter Troubles?
Founded in Miami in 2017, the company faced financial turbulence in 2020 when the pandemic forced customers into lockdowns. Scooters, promoted as environmentally friendly alternatives for commuting through driving, walking, or other public transportation methods, faced stiff competition from rivals like Lime Micro Mobility.
Having raised over 5 million in 2019, the company increased its valuation to .5 billion before setbacks in the following year. In 2021, Bird went public through a special purpose acquisition with a valuation drop. In September, the New York Stock Exchange delisted Bird when the company failed to maintain its market capitalization above million for 30 consecutive days.
After that, the business started doing over-the-counter trading, and as of Wednesday, its shares were trading for less than.
In accordance with the press release, “Bird scooters have traveled more than 300 million miles globally, offsetting an estimated 90 million pounds of carbon emissions from presumed car trips and playing a significant role in achieving sustainability goals in hundreds of cities, creating convenient, efficient, and fun alternative transportation.”
Bird is optimistic about its impact on global transportation and environmental sustainability in spite of the challenges. In the face of bankruptcy, the company’s future remains uncertain, and the ongoing proceedings will determine its fate in the market.