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Bird, the electric scooter company, has submitted bankruptcy filings.
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Yvonne S. Sanders
December 27, 2023 - 06:30 am
It appears that Bird, the electric scooter company once valued at $2.5 billion, has filed for Chapter 11 bankruptcy protection in Florida federal court.
The company plans to use the bankruptcy proceedings to facilitate the sale of its assets, with an expected completion within the next 90 to 120 days.
Bird's electric scooters, initially popular as an environmentally friendly alternative to driving and public transit, faced challenges during the COVID-19 pandemic when customers stopped riding due to lockdowns.
Despite raising over $275 million in 2019 and achieving a valuation of $2.5 billion, the company struggled to recover. Bird went public in 2021 through a merger with a special purpose acquisition company (SPAC), but its share price declined.
The bankruptcy filing comes after the New York Stock Exchange delisted Bird in September for failing to comply with the exchange's requirements, specifically the inability to maintain a market capitalization above $15 million for 30 consecutive days.
Subsequently, the company's shares started trading on the over-the-counter exchange, and as of the latest information, the stock was trading at less than $1 per share.
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