Charge Enterprises, a key player in the EV charging market, has filed for bankruptcy, citing financial challenges. The company, which recently partnered with Stellantis and GM, has announced plans to restructure its business under the supervision of its senior lender, Arena Investors, according to Bloomberg. Mark LaNeve, a former executive at Ford and GM, serves as the company’s president.
Stellantis, in a move to expand its EV charging infrastructure, had partnered with Charge Enterprises to install EV chargers at over 2,600 dealerships across the US. Charge Enterprises also provided charging solutions for Volvo, Ford, and General Motors.
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Despite a revenue of $132.3 million in the third quarter of last year, compared to $185.9 million in the same period of 2022, the company faced mounting liabilities of around $48.7 million against a book value of over $114 million.
Charge Enterprises attributed its financial woes partly to its dealings with investment adviser Korr Acquisitions Group Inc. and its former chairman, Kenneth Orr. The company claimed that around $10 million, earmarked for them, was unexpectedly unavailable when needed, as it had been transferred to other companies affiliated with Orr.
In response, Charge Enterprises sued Korr and Orr, alleging financial mismanagement. However, Korr and Orr have refuted these claims, arguing that Charge Enterprises had regular access to account statements and the authority to use the funds for cross-collateralization.
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Charge Enterprises’ bankruptcy filing adds to a growing list of EV-related companies facing financial challenges. Notable examples include Lordstown Motors Corp., Proterra, Electric Last Mile Solutions Inc., and layoffs at Our Next Energy (ONE) and LG Energy Solution. As the EV market continues to evolve, the industry is witnessing both growth and consolidation, with companies facing increasing pressure to adapt to market demands.
