It’s unclear at this time what the recent Chapter 11 bankruptcy filing by Miami-based electric scooter rental company Bird Scooter will mean for the city of Emporia.
That’s according to Emporia City Manager Trey Cocking who while speaking with KVOE News Thursday morning stated the city has yet to receive any official bankruptcy paperwork related to the company. The city entered into a contract with Bird back in the summer of 2021.
Bird Scooters are still out and, at last word, available for rent across the community. With the recent bankruptcy situation, Cocking encourages residents to continue using the scooters while they are available but to make sure they are staying vigilant of notifications on the Bird Scooter app.
Once bankruptcy proceedings begin, Cocking says all contracts will become null and void and if there are any financial obligations from Bird to the city remaining at that time, the city will “fall in line” with all other debt holders.
According to ABC News, the company lost more than $430 million in 2021, the same year it became a publicly traded company.
The same ABC News Report says the company has managed to secure $25 million in financing from MidCap Financial as it looks to reorganize under Chapter 11 protection in Florida. Bird’s stock lost a significant amount of value following Wednesday’s filing dropping 80 percent to close at 8 cents per share.
