Bird Global, the micromobility company, has filed for Chapter 11 bankruptcy in Florida.
In a statement, the company said it was entering a financial restructuring process to boost its balance sheet and shape it up for “long-term, sustainable growth.”
Bird said that it had sufficient funds to “meet financial obligations to city partners, vendors, suppliers and employees during and after the restructuring process and will operate as usual.”
Michael Washinushi will stay on as interim CEO of Bird during the restructuring.
“We are making progress toward profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring,” he said. “We remain focused on our mission to make cities more livable by using micromobility to reduce car usage, traffic and carbon emissions.”
The company’s lenders and Apollo Global Management have agreed on $25 million in “debtor in possession” financing. Bird will sell its assets as per the court’s processes.
Florida-based Bird, which was founded in 2017, suspended trading on the New York Stock Exchange in late September. The company had announced the acquisition of Skinny Labs, trading as Spin, just days before.
Bird raised more than $800 million in venture capital since launch and went public via special purpose acquisition company in 2021.
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Bird Canada and Bird Europe, which trades as Bird Rides Europe, are not part of the filing and will operate as normal.
Meanwhile, Micromobility.com, another company offering scooters and e-bikes, has had trading on the Nasdaq suspended as of Wednesday because its share price went under $1.
The company is deciding whether to appeal the decision but said in a statement that it sees “potential opportunities to streamline operations through delisting and deregistration. These benefits include lower operating costs, reduced management time commitment to compliance and reporting activities and a simplified corporate governance structure.”