The self-service scooter rental company Cityscoot declared itself insolvent on Wednesday before the Paris commercial court, “requesting its protection” while it finds new investors to deploy its new electric fleet. “In search of investors to deploy its new fleet of electric scooters, Cityscoot is seeking protection from the Paris commercial court,” it is indicated in a company press release. The cessation of payment file was submitted to the registry on Wednesday, a spokesperson for the company with 168 employees in France told AFP.
“This type of procedure makes it possible to freeze liabilities and give time to find solutions with new partners,” added the same source. In its press release, the company, which won the call for tender from the city of Paris in July with two other companies to operate in the capital for the next five years, explains that it needs new funds to finance its new fleet. of electric scooters, which it intends to “gradually deploy” in 2024.
“This fleet renewal project, essential for the profitability of the model and to achieve the objectives of our 2025 business plan, requires additional financing,” indicated the management of the company, cited in the press release. “In order to conduct this search for support in the best conditions, which should last several months, we are requesting the protection of the Paris commercial court,” she added, specifying that “an expanded call for tenders will be conducted by the procedural organs", that is to say the commercial court.
Cessation of payments is the first step towards receivership or liquidation, when a company is running out of money. In particular, it makes it possible to protect employees, guaranteed to receive their salaries, and to freeze the company's debts for the duration of the procedure. Cityscoot, which has 2,500 vehicles in Paris, has 250,000 active users and more than 18 million trips since the company was created in 2014. In addition to Paris and 17 cities in the inner suburbs, the company also operates in Italy: in Milan since 2019 and Turin since 2022.