Grow, of the famous electric bicycles and scooters, has been declared bankrupt by the Court

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The company was unable to comply with the judicial recovery plan, with no expectation of resuming activity. Scooters were a ‘fever’ for Faria Lima, but they never managed to operate profitably. Aloisio Mauricio/Foto Arena/Estadão Conteúdo Grow, a bicycle and electric scooter rental company, was declared bankrupt by the São Paulo Court. The decision was made by judge João de Oliveira Rodrigues Filho, from the 1st Bankruptcy and Judicial Recovery Court, and was published last Monday (6). The sentence came after the company stated that “due to circumstances beyond its control”, it cannot honor compliance with the judicial recovery plan and that there is no expectation of resuming activity. With the decision, creditors will have their rights and guarantees reconstituted under the conditions originally contracted, deducting the amounts paid and except for the acts carried out within the scope of the judicial recovery. Thus, to pay off part of the company’s debts, the judicial administrator must evaluate and sell the assets of the bankrupt estate within a maximum period of 180 days, having to present to the judge a detailed plan for realizing the assets (conversion of the debtor’s assets into cash ). Grow was born from the merger of shared mobility companies Grin and Yellow, famous for dockless bicycles and electric scooters that took over major avenues across Brazil between 2018 and 2019 (see below). At the time, it was marked by its massive presence on Avenida Brigadeiro Faria Lima, the cradle of São Paulo’s financial market. Americanas requests judicial recovery; understand how it works Understand the company’s history Yellow was founded by Ariel Lambrecht, Eduardo Musa and Renato Freitas, in 2017. It was the first bike sharing service using a “dockless” system, which did not require specific parking spots. The bicycles were locked on the sidewalks, and the cyclist unlocked them using a cell phone application. The application read the code for each one and the lock was automatically opened. From then on, the timer calculated the price, based on the travel time. In the first phase, in August 2018, around 500 bicycles were put into operation, with the goal of reaching 20,000 by the end of that year. It reached its peak of operation in 2019, but from the beginning the company had difficulties with theft and maintenance of bicycle vandalism. Also in 2019, the merger of Yellow with the Mexican Grin was announced, forming Grow. At the time, the new company said it had a fleet of 135,000 scooters and bicycles in 7 countries in Latin America, in addition to 1,100 employees. At the beginning of 2020, Grow announced the end of shared bicycle operations in Brazil and stated that it would maintain electric scooters in just three cities: São Paulo, Rio de Janeiro and Curitiba. At the time, the company stated that the decision was “temporary” and that it was part of a restructuring of the startup. Months later, in March, the company was acquired by the investment fund Mountain Nazca, owner of Peixe Urbano and other companies in Latin America, saying that the objective was to become profitable and have efficient operations — different from what was done in 2019 , when the priority was expanding operations and growing the number of races and user base. The crisis scenario, however, worsened due to the Covid-19 pandemic, since, without people’s daily mobility amid social isolation, the company had to suspend its operations. In July of the same year, the company filed for judicial recovery. *Collaborated with Raphael Martins

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