DECEMBER 21, 2023 — BIRD FILES FOR CHAPTER 11 BANKRUPTCY
Bird Enters into Comprehensive Restructuring Support Agreement with First- and Second-Lien Lenders to Strengthen Financial Position
Bird Global, a leader in environmentally friendly electric transportation, today announced its entry into a financial restructuring process aimed at strengthening its balance sheet and better positioning the company for long-term, sustainable growth. Bird will operate as usual during this process, maintaining the same service for its riders and upholding its commitments to partner cities, fleet managers, and employees.
"This announcement represents a significant milestone in Bird's transformation, which began with the appointment of new leadership early this year," said Bird Interim CEO Michael Washinushi. "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."
During and after the restructuring process, Mr. Washinushi will continue as Interim CEO, supported by Board Chair John Bitove, President Stewart Lyons, and CFO Joseph Prodan. Last week, Harvey L. Tepner joined the Board of Directors as an Independent Director, and Philip Evershed resigned from the Board of Directors.
The Company's first- and second-lien lenders have also entered into a comprehensive restructuring support agreement (the "RSA"). To implement the RSA, and access $25 million in new debtor-in-possession financing from MidCap Financial, a division of Apollo Global Management, and the company's existing second-lien lenders, Bird has commenced a voluntary Chapter 11 bankruptcy proceeding in the U.S. Bankruptcy Court for the Southern District of Florida. The Company will use the court-supervised process to facilitate a sale of its assets, and has entered into a "stalking horse" agreement with the Company's existing lenders, which effectively sets a floor for Bird's value. The bid is subject to higher and better offers, and is aimed at maximizing value for all stakeholders. Bird expects to complete the sale process in the next 90-120 days.
FEBRUARY 18, 2023 — BIRD ABANDONS SAN FRANCISCO, CALIFORNIA MARKETPLACE
The company has notified the San Francisco Municipal Transportation Agency, which manages the city's scooter program, that it’s leaving the city with its 1,500 electric rental scooters.
According to a company spokesperson, “It’s difficult for us to justify operating in a city where we don’t make money.”
Maggie Hoffman, Bird’s vice president of city growth and strategy, told the San Francisco Chronicle, that the city's regulations are the most onerous it faces anywhere in the world, saying that fines for infractions are five to six times higher than in any of the hundreds of other cities in which the company operates.
Once again, California’s horrendously hostile business climate claims another victim.
JULY 19, 2022 — Original post…
Santa Monica, California-based micromobility company producing electric scooters designed for short-term rental, has announced a major cost-cutting initiative leading to a significant 23% reduction in force.
The company has laid off 406 employees positions across a variety of departments and regions via a 2-minute Zoom webinar titled "COVID-19 Update."
According to a Bird spokesperson, "While the need for and access to micro-electric vehicle transportation has never been greater, macroeconomic trends impacting everyone have resulted in an acceleration of our path to profitability. This path required us to reduce our cost structure in a way that allows us to responsibly and sustainably expand our service beyond the more than 400 cities we operate in today as climate action has never been more paramount. In addition to eliminating all non-critical third-party spend, we also, unfortunately, had to depart with a number of team members who passionately helped create a new industry and paved the way for more eco-friendly transportation."
Change is coming. There will always be a tomorrow, no matter how much you may try to ignore it. There are no guarantees in life or promises for a bright future. Just because something bad hasn't happened yet, doesn't mean it won't. It can happen to anyone, anytime, anywhere. No one is guaranteed to wake up tomorrow and still have a job by evening. Are you now wondering, Am I Next?
