Canoo, the electric vehicle startup, announced yesterday that it is shutting down operations effective immediately and has filed for Chapter 7 bankruptcy in Delaware. According to its filing, the company has assets worth $126 million but owes over $164 million to its creditors, as reported by TechCrunch.
The bankruptcy process will now involve the appointment of a Bankruptcy Trustee by the U.S. government. This trustee will oversee the liquidation of Canoo’s assets and ensure the proceeds are distributed to creditors. Canoo stated that the decision to file came after failing to secure support from the U.S. Department of Energy’s Loan Programs Office or foreign investors.
Signs of Canoo’s struggles were evident last month when it halted operations at its Oklahoma facilities and placed employees on a “mandatory unpaid break.” The company had also faced a steady loss of executives, including all of its founders, over recent months.
In a statement, Canoo chairman and CEO Tony Aquila expressed disappointment about the company’s collapse while thanking government and business partners who had collaborated with Canoo. The company had previously engaged in high-profile projects, including producing shuttles for NASA’s Artemis crew and signing an agreement to deliver 4,500 electric vans for Walmart.
