Florida –
Company electric scooterBird, one of the once flashy startups that once had a valuation of USD 2.5 billion, filed for Chapter 11 bankruptcy protection in Florida federal court.
As quoted detikINET from CNBC, Bird said it would use the bankruptcy process to facilitate the sale of its assets, which is expected to be completed within the next 90 to 120 days.
Bird electric scooters were previously touted as an environmentally friendly alternative to driving and other public transportation. Their popularity had exploded before the Covid-19 pandemic.
The company managed to raise more than USD 275 million in funding in 2019, increasing its valuation to USD 2.5 billion.
However, after many customers stopped riding because they were forced to go into lockdown in 2020 when the pandemic was at its peak, Bird experienced difficult times. This company went public in 2021, but its share price plummeted.
Bird’s bankruptcy process occurred after the New York Stock Exchange delisted the company last September. Bird failed to meet exchange requirements after being unable to maintain its market capitalization above USD 15 million for 30 consecutive days. Its shares are trading at less than USD 1 per share.
Bird said that with the bankruptcy filing, they entered a financial restructuring process aimed at strengthening the financial balance. The company continues to operate as usual in pursuit of long-term and sustainable growth.
Founded in 2017 by former Lyft and Uber executive Travis Vander Zanden, Bird is one of many startups that enable city residents to pay for electric scooters or bikes to travel short distances.
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(fyk/fyk)
2023-12-26 04:30:00
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