PBSC Urban Solutions, which makes bicycles and support equipment for bike share programs in Aspen, San Francisco, Boston, Chattanooga, Chicago, Columbus, Minneapolis, New York and Wasington DC filed for bankruptcy protection on Monday, the Montreal Gazetter reported.
The Montreal-based company's Bixi bike share system comprises more than 37 000 bikes and 2 676 stations in cities in Australia, Canada, the United Kingdom and the United States. The company's finances have deteriorated in recent months as New York City and Chicago withheld $CAN5.6 million payments over disputes. PBSC Urban Solutions bankruptcy petition listed $CAN50 million in debts.
PBSC Urban Solutions was created by the city of Montreal's parking authority in 2007 and is still run by the city. The company reported a $6.9 million deficit in its first year and in 23011 the City of Montréal leant the company $37 million and guaranteeed another $71 million in loans to keep it afloat, according a report published by AtlanticCities.com.