Canoo Inc. has filed for voluntary relief under Chapter 7 of the U.S. Bankruptcy Code. This petition was submitted to the U.S. Bankruptcy Court for Delaware, which will appoint a Bankruptcy Trustee to oversee the liquidation of the company’s assets and the distribution of funds to creditors.
The company, which has provided services to various organizations including NASA, the Department of Defense, the United States Postal Service, and the State of Oklahoma, has faced challenges in securing financial backing from the U.S. Department of Energy’s Loan Program Office. Despite efforts to engage with foreign investors, these attempts did not yield the necessary financial support. Consequently, the Board of Directors has opted to file for insolvency.
In a statement, Tony Aquila, the Chairman and CEO and a significant investor in the company, expressed gratitude to the employees for their commitment and acknowledged the support received from various organizations. Following the bankruptcy filing, Canoo has announced that it will cease all operations immediately. The appointed trustee will manage the liquidation process, and the company’s team will assist in this transition.