By Lynn Binnie
Whitewater Banner volunteer staff
whitewaterbanner@gmail.com

Bird Global, the company that operates the electric rental scooters in Whitewater during warmer months, on December 20 voluntarily filed for Chapter 11 bankruptcy protection to undergo restructuring to strengthen its balance sheet in preparation for the sale of its assets. The company’s primary lenders are providing an additional $25 million debtor-in-possession funding for operations in the meantime. According to seekingalpha.com, the company has been experiencing falling sales, and in spite of aggressive expense reductions has been unable to achieve profitability. This week the company assured the city that it expects to continue fulfill its commitments and to resume normal operations in the spring, although Bird acknowledged in a November public statement that there was substantial doubt about its ability to continue as a going concern. Apparently it was after that announcement was made that the company agreed to a “stalking horse bid” in which lenders provided a floor for the company’s value in the hope that other prospective owners offer a higher bid. In its communication to the city, Bird indicated, “We expect Bird to emerge from this restructuring process in 90-120 days with a strengthened financial position that will allow us to invest more significantly in our operations, employees, and the communities we serve for years to come.”

Jimmy Gilman, Bird’s government partnerships manager, wrote, “Our commitment to the City, local workforce, and riders remains unwavering and we expect that this restructuring will allow us to continue investing in hardware and technology and to continue building on our success in the City.” 

In response to Bird’s message, City Manager John Weidl stated, “The City of Whitewater acknowledges Bird Scooters’ recent announcement regarding their financial restructuring. We remain focused on the provision of uninterrupted services in our community. Bird’s assurance of maintaining their operations during this period is important to us, as we continue to prioritize diverse, accessible, and sustainable transportation options for our residents, such as scooters, golf carts, UTVs, and our shared ride program with Brown Cab. We look forward to our ongoing partnership with Bird and their contribution to our City’s transportation network.”