Canoo, an EV startup, announced on Friday night that it has filed for Chapter 7 bankruptcy and will be ceasing operations immediately. The company’s financial struggles were evident leading up to this announcement, with multiple executive departures, furloughs, and dwindling cash reserves of just $700,000 reported to the SEC in November.
In a press release, Canoo revealed that efforts to secure funding from the Department of Energy’s Loan Program Office and foreign sources had failed, leading to the decision to file for insolvency. With over $164 million in debt and $126 million in assets, Canoo’s assets will be liquidated under the filing in Delaware to repay creditors. CEO Tony Aquila expressed disappointment in the outcome.
Despite producing electric vans for NASA and a prototype for the US Army, Canoo’s plans for larger fleet deals with the likes of USPS and Walmart did not materialize as expected.
Overall, the company’s bankruptcy filing marks the end of its operations, highlighting the challenges faced by start-ups in the competitive EV market.
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