Fisker’s Austrian division, Fisker GmbH, has filed for bankruptcy protection, highlighting the challenges faced by the cash-strapped electric vehicle (EV) startup. The move comes after discussions with a major automaker for a potential investment fell through, prompting Fisker to explore strategic alternatives.
The restructuring process initiated by Fisker GmbH does not involve other divisions of the company, which will continue to operate normally. Fisker has been under financial strain since February when it first raised concerns about its financial viability. The company is contending with intense competition and reduced consumer spending amid challenging economic conditions.
In an email statement, a Fisker spokesperson explained the rationale behind the filing, stating, “By filing to open a restructuring proceeding via self-administration, Fisker Austria gains breathing room to protect its business while it conducts a value-maximizing strategic transaction or other sale of assets.” The spokesperson added, “Fisker continues to diligently explore all available options to maximize the value of its global business.”
Fisker had previously warned that it might have to seek bankruptcy protection within 30 days if it did not receive sufficient relief from its creditors and obtain enough liquidity to meet its current debt obligations.
Despite the bankruptcy filing, Fisker GmbH intends to continue paying its employees and maintaining its vehicle sales and service operations.
