Canoo Inc., the high-tech mobility and energy company based in the United States, has filed for Chapter 7 bankruptcy protection, seeking relief under the U.S. Bankruptcy Code. The company, which has worked with notable clients such as NASA, the Department of Defense, the U.S. Postal Service, the State of Oklahoma, and Walmart, will now undergo liquidation proceedings, with a Bankruptcy Trustee appointed by the U.S. Bankruptcy Court for Delaware overseeing the process.
Despite its innovative, American-made products and initial success in securing key partnerships, Canoo struggled to secure essential financial backing from the U.S. Department of Energy’s Loan Program Office. The company also sought capital from foreign investors, but these efforts, too, were unsuccessful, ultimately leading to the decision to file for insolvency.
Tony Aquila, the company’s chairman and CEO, expressed deep regret at the outcome. “We want to thank our employees for their unwavering dedication and hard work. We share in the disappointment of this moment,” he said. “We also extend our gratitude to NASA, the Department of Defense, USPS, the State of Oklahoma, and Walmart for their trust and belief in our vision.”
Canoo has announced that, effective immediately, it will cease operations. The company will work closely with the appointed trustee to ensure an orderly liquidation of assets and the distribution of proceeds to its creditors.
In December Canoo Inc. announced the company furloughed 82 employees, both salaried and hourly, and idled its factories in Oklahoma while it worked to finalize securing the capital necessary to move forward with its operations.
The company was in in advanced discussions with various capital sources.
Days after furloughing dozens of employees without pay, EV startup Canoo informed its remaining staff that they would be placed on a “mandatory unpaid break” until at least the end of the year. An email stated that employees would be locked out of Canoo’s systems, with their benefits remaining active through the end of the month.