The supplier of Chicago’s Divvy bike sharing program, the Public Bike System Company, has filed for bankruptcy, which could throw a wrench in the city's plan for expansion.
The Public Bike System Company, known as Bixi, also supplies the bike-sharing program in Montreal. The Canadian city's Mayor Denis Coderre announced news of the bankruptcy Monday, and the Canadian Broadcasting Company and Montreal Gazette first reported the story.
The Montreal City Council already approved a bailout package for Bixi to the tune of $108 million three years ago. Coderre said Monday that the city of Montreal would not provide more money to the company and instead would seize its $11 million in local assets.
The story from CBC noted that two of Bixi's clients, including Chicago and New York, collectively owe Bixi $5.6 million after reportedly withholding the funds due to "persistent delays and problems with the technology.”
Chicago Mayor Rahm Emanuel's office said in November that 75 additional stations would go up in the city this year thanks to a $3 million federal grant.
The mayor's office has not yet responded to the bankruptcy news or charges that the city withheld payments to the company.