Canoo, a seven-year-old electric vehicle startup, has officially declared bankruptcy and is ceasing operations immediately. The company is currently in the process of liquidating its assets in a Chapter 7 bankruptcy proceeding in the Delaware Bankruptcy Court.
In a press release published late Friday, Canoo stated that it had been unsuccessful in securing capital from foreign sources and was unable to obtain funding from the U.S. Department of Energy’s Loan Program Office. These financial setbacks led to the company’s bankruptcy filing.
According to the bankruptcy filing, Canoo owes money to fewer than 49 creditors, with outstanding liabilities ranging between $10 million and $50 million. However, the company reported having less than $50,000 in assets.
The bankruptcy filing follows Canoo’s decision to furlough all remaining employees and shut down its factory in Oklahoma. The company had faced challenges throughout 2024, struggling to deliver its electric vans to customers and experiencing several executive departures. By mid-November, Canoo only had $700,000 in its bank account.
Canoo is the latest electric vehicle startup to go bankrupt after going public through a special purpose acquisition company (SPAC). Other companies like Electric Last Mile Solutions, Fisker, Lordstown Motors, Proterra, Lion Electric, and Arrival have also filed for various levels of bankruptcy protection in recent times.
Canoo announced plans to merge with SPAC Hennessy Capital Acquisition Corp. in 2020, raising around $600 million after going public. The company produced a small number of electric vans and partnered with organizations like the United States Postal Service, Department of Defense, and NASA.
Founded in 2017 by a group of executives dissatisfied with their previous EV startup, Canoo initially aimed to revolutionize the electric vehicle market with its innovative technology. Despite attracting interest from companies like Apple, Canoo faced numerous challenges and changes in direction after going public.
Under new leadership, Canoo shifted its focus to commercial fleets and underwent multiple strategy changes regarding vehicle manufacturing and headquarters location. The company’s financial ties with its chairman and CEO, Tony Aquila, raised questions about its sustainability.
Aquila’s financial firm supported Canoo with loans to prevent bankruptcy, but signs of financial trouble were evident leading up to the company’s bankruptcy filing, including employee terminations and removed billboards.
