Canoo Inc. Files for Bankruptcy; Ceases Operations

Canoo Inc., a US advanced mobility and energy company, has filed a voluntary petition for relief under Chapter 7 of the US Bankruptcy Code. The filing will result in the federal appointment of a Bankruptcy Trustee to oversee the liquidation of the company’s assets and the distribution of proceeds to creditors.

Despite being American-made, successfully delivering to such esteemed organisations as NASA, the US Department of Defense, The United States Postal Servicem the State of Oklahoma and having agreements with Walmart and others, Canoo has been unable to secure financial support from the US Department of Energy’s Loan Program Office.

Recently, the company’s executives were in discussions with foreign sources of capital.

In light of the fact that these efforts were unsuccessful, the Board has made the decision to file for insolvency.

As a result of this filing, Canoo has informed all stakeholders that it will cease operations effective immediately. 

Tony Aquila, one of the company’s largest investors and Chairman and CEO, says “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.”

In December, Canoo furloughed 82 employees, both salaried and hourly, and idled its factories in Oklahoma.