Electric scooter company Bird Global, once valued at $2.5 billion, has filed for Chapter 11 bankruptcy protection. Despite having a substantial market valuation and being backed by prominent Silicon Valley investors, the company’s shares plummeted by over 90% within six months. The decline came after Bird was delisted from the New York Stock Exchange due to overstated revenue claims. The company’s founder left in June, and Bird had previously warned of potential financial instability without additional capital.

Bird, which operates a scooter rental service in over 350 cities, has a restructuring plan that involves asset sales and has secured $25 million in financing from Apollo Global Management and other lenders to stay operational during the process. The bankruptcy proceedings do not affect Bird’s Canadian and European branches. The wider electric scooter industry has faced challenges, including safety concerns, increased injuries, recalls, and regulatory restrictions in various cities, contributing to the diminished appeal of e-scooters.