Rockford Bird scooters could fly the coop after bankruptcy

The electric scooters available for rent in Rockford aren't expected to fly the coop just yet as the company that owns them files for bankruptcy.

Electric transportation company Bird announced Dec. 20 that it has filed for Chapter 11 protection in the Southern District of Florida as part of a plan that began earlier this year with the appointment of new leadership.

"We are making progress toward profitability and aim to accelerate that progress by right-sizing our capital structure through this restructuring," Bird CEO Michael Washinushi said in a release. "We remain focused on our mission to make cities more livable by using micro-mobility to reduce car usage, traffic, and carbon emissions."

Washinushi added that Bird will operate as usual and uphold its commitments in partner cities while the company is restructuring.

In Rockford, that means the more than 100 scooters will remain in the Forest City, where they've gotten a lot of use. When Bird landed in Rockford in 2021, locals took more than 20,000 rides in the first six months and continue to use them for recreation and everyday transportation.

More: Riding out of town: Bird scooters leaving Freeport after city council vote

What happens after Bird emerges from Chapter 11 is not known. The court will supervise the sale of the company's assets and oversee a bidding agreement with its lenders. In the interim, Bird has secured $25 million in new debtor-in-possession financing from MidCap Financial.

The process is expected to be completed in 90 to 120 days. Bird Canada and Bird Europe are not part of the bankruptcy filing.

Rockford’s e-scooters are not funded by taxpayers, and the city does not receive a share of Bird’s revenue. Under the city's agreement with the company, the pact can be terminated by either party. The company maintains liability insurance, lists Rockford as an additional insured and indemnifies the city from all claims.

Bird is in 350 cities, primarily across Canada, the United States, Europe, the Middle East, and Australia.

Jim Hagerty covers business, growth and development and other general news topics for the Rockford Register Star. Email him at jhagerty@gannett.com.

This article originally appeared on Rockford Register Star: Bird files for bankruptcy, future in Rockford remains up in the air