Hold onto your helmets, folks, because the latest corporate crash isn’t on the roads—it’s in the stock market! Bird Global, the once high-flying electric scooter company, has officially skidded into bankruptcy. It’s a wild ride from a $2.5 billion valuation to scraping the financial pavement.
SPACtacular Fail: Bird’s Bumpy Ride to Bankruptcy
Bird, a Miami-based electric scooter distributor, took off in 2017 and soared to a dizzying $2.5 billion valuation by 2019. This little scooter company that could, did… until it couldn’t. In a spectacularly misguided move, Bird merged with a SPAC in 2021, joining the fad that turned risky ventures into stock market darlings overnight.
From Bird Seed to Financial Need
After its stock market debut, Bird’s share price took a nose dive, plummeting over 90% within six months. The company was like Icarus – flew too close to the sun with its SPAC wings and plummeted back to Earth. They warned of bankruptcy last year, and now they’ve officially crash-landed into Chapter 11.
Fundraising Flop: Investors’ Nest Egg Cracks
In a desperate attempt to stay airborne, Bird raised about $30 million in convertible notes by merging with Bird Canada. But even this life raft couldn’t keep them afloat in the turbulent financial waters. Turns out, building a self-sustaining scooter business is trickier than doing tricks on a scooter.
Paris Pecks Back: The People’s Referendum
Adding insult to injury, nearly 90% of Parisian voters decided to kick the scooters to the curb, citing sidewalk congestion and traffic accidents. It seems the City of Love had no love left for Bird’s two-wheeled nuisances.
Bankruptcy Brouhaha: The Courtroom Conundrum
Listing assets and liabilities up to $500 million each, Bird has now entered the legal labyrinth of bankruptcy. They’ve struck a deal with creditors, including asset sales, but need court approval to proceed. Meanwhile, Apollo Global Management and other lenders are throwing Bird a $25 million lifeline to flap through bankruptcy proceedings.
Bird’s International Escape: Not All Nests Fall
While the U.S. business is facing financial extinction, Bird’s Canadian and European operations continue to flutter about, business as usual. It’s like watching a bird lose a wing but still somehow keep flying – sort of.
SPAC Attack: A Trend Gone Wrong
Bird’s story is a cautionary tale about SPACs, those shell companies that take businesses public faster than a speeding scooter. As Bird joins the growing list of SPAC-induced bankruptcies, it’s clear that this trend may have been more fad than future.
Conclusion: A Bird Grounded
So there you have it, the tale of Bird Global: a company that zoomed from the heights of a SPAC-backed unicorn to the lows of bankruptcy. In the stock market’s game of musical chairs, Bird was left without a seat when the music stopped. Will Bird rise again, or is this the end of the road for the scooter startup? Stay tuned, because in the world of high finance, even a grounded bird can find a way to soar again!