Canoo unplugged
Sad end to Canoo as it goes under. Electric vehicle companies are facing a strong headwind, and news like this won’t help the sector.
Electric cargo maker Canoo has voluntarily filed for relief under Chapter 7 of the US Bankruptcy Code.
A trustee will now oversee the liquidation of the company’s assets and the distribution of proceeds to creditors.
The NASDAQ-quoted company is based in Justin, Texas, and was founded just seven years ago. It described itself as an automotive tech company that manufactures electric cargo vehicles built to deliver for large commercial, government, and fleet customers globally.
The company built an impressive customer list, including NASA, the Department of Defense (“DOD”), the United States Postal Service (“USPS”), and the State of Oklahoma.
It announced back in December that it had furloughed 82 employees and was idling its factories in Oklahoma. It also said it was working to secure the capital necessary to move forward with its operations.
With the company unable to secure financial support from the US Department of Energy’s Loan Program Office and failing to arrange foreign sources of capital, the management threw in the towel.
Tony Aquila, one of the company’s largest investors and Chairman and CEO said,: “We would like to thank the company’s employees for their dedication and hard work. We know that you believed in our company as we did. We are truly disappointed that things turned out as they did. We would also like to thank NASA, the Department of Defense, The United States Postal Service (“USPS”), the State of Oklahoma and Walmart for their belief in our products and our company. This means a lot to everyone in the company.”