A popular electric company now announces an unexpected bankruptcy leading to the sale of its assets after failing to recover from the pandemic.
The electric scooter company Bird, once valued at $2.5 billion by investors, filed for Chapter 11 bankruptcy protection in Florida federal court Wednesday, reports CNBC.
The company has entered into a “stalking horse” agreement, which sets a floor for Bird’s value, with its existing lenders, according to a release.
Bird said it will use the bankruptcy proceeding to facilitate a sale of its assets, which it expects to complete within the next 90 to 120 days.
The company’s electric scooters are “touted as an environmentally friendly alternative to driving and other forms of public transit.
They exploded in popularity before the onset of the Covid-19 pandemic, and the company raised more than $275 million in 2019, which pushed its valuation to $2.5 billion,” reports CNBC.
“But after customers stopped riding as they were forced into lockdown in 2020, Bird struggled to recover.
The company went public via a merger with a special purpose acquisition company in 2021, but its share price tumbled.”
Bird’s bankruptcy proceedings come after the New York Stock Exchange delisted the company in September.
Bird failed to comply with the exchange’s requirements after it was unable to keep its market capitalization above $15 million for 30 consecutive days.
The company’s shares began trading on the over-the-counter exchange later that month.
As of today, the stock is under $0.08.
Bird Canada and Bird Europe are not part of the company’s Wednesday filing and will “continue to operate as normal,” according to the release.
This is a developing story.
Also Read: A US Company Now Declares An Unexpected Bankruptcy
Other Economy News Today
A massive online retailer is now at high risk of closing as the company’s struggles deepen with their website currently being down.
Visitors to Zulily are automatically redirected to a blank webpage with only the message, “We are down for maintenance.”
The message follows a period of time where “final sale” and “all items must go” language appeared on Zulily’s homepage, making it unclear if the company intends to go out of business or has already done so, reports RetailDive.
It’s also unclear if or when the website will come back online, which has been down at least since Monday.
RetailDive reports that Zulily and Regent, the private equity firm that bought the retailer in May, did not immediately respond to emails seeking comment about the website or the company’s operational status.
Zulily’s customer service phone line is also no longer being monitored.
“When the number was dialed on Tuesday morning, an automated message said: “Thank you for calling Zulily customer service. We are unable to service your call. Please email us using service@zulily.com for assistance,” reports RetailDive.
“The call then cut off, with no option to leave a message. A message sent to the customer service email received an automated reply indicating the company would respond “within 24 to 72 hours.””
Zulily’s Facebook page was still live on Tuesday morning.
However, the last post was from three days earlier – a promotion to shop for Sorel boots, sneakers and slippers. It includes a link to the now-dead website and mentions that “all sales are final.”
Customer orders appear to be in limbo, as one person asked under the most recent social media post “So are we still getting our orders?”
Another said, “Items not delivered, tracking numbers don’t work and all of their help and support options are closed for maintenance. Will be reporting this page to Facebook as a scam site.”
This is a developing story.
Also Read: Massive Layoffs in California Now Underway Prior to Holidays
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