Byrd, electric scooter rental pioneer, files for bankruptcy

Bird Globalpioneer company in the field of electric scooter rental on the street, went bankrupt. After months of aimless wandering, the company filed for Chapter 11 bankruptcy protection in a Florida court. The economic crisis and regulation in several countries played a key role in its demise.

In accordance with Financial Timescompany will begin its financial restructuring with the support of a group of creditorsWith. Bird’s listed assets and liabilities range from $100 million to $500 million. The goal is to raise $414 million and complete the sales process within 90-120 days.

Byrd noted that it has sufficient liquidity to meet its financial obligations to partners, vendors, vendors and city employees during and after the restructuring process. During all this time, The company will operate as usual, maintaining service passengers and fleet managers.

“We are moving toward profitability and intend to accelerate that progress by adjusting our capital structure through this restructuring,” Bird interim CEO Michael Washinushi said in a statement. “We remain focused on our mission to make cities more livable by using micromobility to reduce car use, traffic and carbon emissions.”

Byrd’s bankruptcy comes at a time when electric scooters have lost their relevance. During 2022, the company laid off dozens of employees and exited several countries. Scooter rentals banned in Paris after its residents complained of the chaos caused by its abandonment on the streets.

Bird: from fame to failure in just five years

Five years after becoming fastest company to reach $1 billion valuation, Byrd is facing a restructuring process. The micromobility company has been hit by the economic crisis as well as a series of regulations that hastened its exit from several markets over the past two years.

The pandemic was a turning point for Byrd, which was forced to lay off 30% of its staff and cease operations in cities such as Barcelona, ​​Madrid, Seville and others. Although the company tried its luck in 2021 with an electric bike, will never be able to recover.

In November 2022 it became known that Bird has been inflating its accounts for two years. In a document filed with the US Securities and Exchange Commission, the company admitted that added unpaid trips to income reports. Accordingly, the audit committee determined that no reliance should be placed on the financial statements for the period from the first quarter of 2020 to the second quarter of 2022.

Bird now faces a new challenge, which management sees as a “major milestone” in its transformation. Chapter 11 protects a company from creditors while it develops a plan to pay them. The company mentioned that Bird Europa is not involved in this presentation. and will continue to operate as usual.