Micro-mobility rental company Bird has announced that it will be filing for Chapter 11 bankruptcy protection in Florida as part of its restructuring process.
The e-scooter rental start-up made the announcement in a press release confirming that it had entered into a “financial restructuring process aimed at strengthening its balance sheet,” with the company continuing to operate as normal in pursuit of “long-term, sustainable growth.”
Bird was founded in 2017 by former Uber and Lyft executive Travis VanderZanden and was the fastest start-up ever to reach a so-called “unicorn” valuation above $1bn, as reported by the FT.
A Chapter 11 bankruptcy will enable Bird to restructure its financials without halting its daily operations.
Bird Interim CEO Michael Washinushi said:
“This announcement represents a significant milestone in Bird’s transformation, which began with the appointment of new leadership early this year. We are making progress toward profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring.
“We remain focused on our mission to make cities more livable by using micromobility to reduce car usage, traffic, and carbon emissions.”
Bird confirmed in a statement Michael Washinushi will continue as Interim CEO during and after the restructuring process, supported by Board Chair John Bitove, President Stewart Lyons, and CFO Joseph Prodan.
