As feared, Montreal-based Bixi, who supply many cities including Chicago with bike-share systems, has filed for bankruptcy protection:
The development was announced Monday by Montreal Mayor Denis Coderre and reported by the Canadian Broadcasting Company and the Montreal Gazette.
Three years ago, the Montreal City Council rode to the rescue of Public Bike System, also known as Bixi, by approving a $108 million bailout package.
It included a $37 million loan to cover the company’s operating deficit and $71 million in loan guarantees Bixi hoped to use to expand into other cities.
On Monday, the CBC quoted Coderre as saying his city would seize control of the troubled company’s $11 million in local assets, rather than sink even more money into it.
Peter Scales, spokesman for the Chicago Department of Transportation, said in the statement: “Divvy, Chicago’s bike share system, continues to operate as normal, and current operations will not be impacted by the announcement that Public Bike System (PBSC) has filed for bankruptcy.
The Divvy Bikes website has no information yet.
Oh, don't die, Divvy. Don't die.