So, after giving the boot to a bunch of its team last year, Bird, the e-scooter rental folks, just dropped the bombshell – they’ve filed for Chapter 11 bankruptcy. But hey, it’s not all doom and gloom. The cool part is that their existing money buddies are swooping in to buy up their stuff, and they’ve got a sweet $25 million loan from Apollo Global Management (you know, the peeps who own Yahoo and Engadget) to keep things rolling, as spilled by The Wall Street Journal.
But Bird wants you to know, it’s not hitting the brakes on business. Nope, they’re assuring everyone that they’ve got the cash to keep the lights on and meet all their financial commitments to cities, partners, vendors, suppliers, and the folks on the payroll during and after this whole restructuring shebang.
And here’s a little nugget – this bankruptcy jazz isn’t messing with Bird’s game in Canada or Europe. Those branches are doing their own thing, living their best lives.
Now, Bird’s looking to make the most out of a tough situation. They’re talking about a “stalking horse” agreement, which sounds kind of wild. Basically, they’re setting up a fancy auction for their assets. The current money backers will throw out a starting bid, and in the next few months, other big shots can jump in and toss their offers into the ring.
Rewind to 2021, Bird went all public using a SPAC (that’s a special purpose acquisition company), rocking an impressive $2.3 billion valuation. But fast forward less than a year, and their stock took a nosedive. The founder, Travis VanderZanden, made his exit in late 2022, with rumors swirling that his stake in Bird was worth less than his pad in Miami.
