EV Startup Canoo Ceases Operations
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Canoo, the maker of roly poly-looking electric vans and trucks, announced Jan. 17 it had begun bankruptcy proceedings and ceased operations, effective immediately.
“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,” said chairman and CEO Tony Aquila in a press release.
In August 2024, Canoo confirmed plans to move its headquarters from California to Justin, Texas, where production operations had been located.
Canoo announced furloughs and idled its Oklahoma factories in December while it worked to secure the capital necessary to continue operating. The news release said that Canoo failed to secure financial support from the U.S. Department of Energy’s Loan Program Office, and that efforts to secure foreign investment were unsuccessful.
Canoo Inc. Announces Chapter 7
Bankruptcy Filing
JUSTIN, Texas, Jan. 17, 2025 (GLOBE NEWSWIRE) -- Canoo Inc. (Nasdaq: GOEV), (the
"Company"), a high-tech advanced mobility and energy company, today announced that it
has filed a voluntary petition for relief under Chapter 7 of the U.S. Bankruptcy Code. The
filing, made with the U.S. Bankruptcy Court for Delaware, 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 organizations as
NASA, the Department of Defense (“DOD”), The United States Postal Service (“USPS”), the
State of Oklahoma and having agreements with Walmart and others, Canoo has
unfortunately been unable to secure financial support from the U.S. Department of Energy’s
(“DOE”) 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 difficult decision to file for insolvency.
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.”
As a result of this filing, Canoo regrets to inform all stakeholders that it will cease operations
effective immediately. A court appointed trustee will manage the liquidation of the company’s
assets and our team will collaborate closely with the Delaware Bankruptcy Trustee to assist
with the process.
Contact:
press@canoo.com
Source: Canoo, Inc.
“In light of the fact that these efforts were unsuccessful, the board has made the difficult decision to file for insolvency,” the release said.
The bankruptcy proceedings will result in the liquidation of Canoo’s assets and distribution of proceeds to creditors.
Though production vehicles never materialized, Canoo found some success in its fleet vehicle efforts. Since its founding in 2017, Canoo secured multiple high-profile partnerships with NASA, the U.S. Postal Service, Walmart and others.
Most notably, specialized Canoo vans were intended to transport astronauts to the launch pad as part of NASA’s Artemis II mission, which will send four astronauts around the moon and back in 2026. In 2022, Walmart announced an agreement to purchase 4,500 Canoo vehicles for use in last-mile delivery.
Representatives for Canoo, NASA and Walmart did not immediately respond to request for comment. It is unclear how Canoo’s bankruptcy will affect these partnerships.
