Electric vehicle startup Canoo has filed for Chapter 7 bankruptcy and will cease operations immediately. The company has initiated a liquidation of its assets in Delaware Bankruptcy Court.
In a press release issued on Friday, Canoo explained that it had been unable to secure the necessary funding, despite engaging in discussions with foreign sources of capital.
Additionally, the company highlighted its inability to obtain support from the U.S. Department of Energy’s Loan Program Office, which has been providing loans to other companies in the sector.
This filing follows a series of setbacks, including the furloughing of the company’s remaining workers and the shutdown of its factory in Oklahoma. Throughout 2024, Canoo struggled to deliver its electric vans and faced significant executive turnover. By mid-November, the company reported just $700,000 in its bank account.
Despite securing contracts with organizations such as NASA, the Department of Defense (DOD), the United States Postal Service (USPS), the State of Oklahoma, and Walmart, Canoo was unable to secure the financial backing needed to continue operations.
Tony Aquila, Chairman and CEO, expressed regret over the company’s closure, stating, “We would like to thank the company’s employees for their dedication and hard work… We are truly disappointed that things turned out as they did.” Aquila also thanked the companies and agencies that believed in Canoo’s products.
