EV Startup Canoo Files for Chapter 7 Bankruptcy Relief

Canoo Inc., the electric vehicle startup, filed for Chapter 7 bankruptcy on January 17, 2025, in Delaware. This filing indicates that the company will cease operations immediately and liquidate its assets to pay creditors. Canoo reported assets worth $126 million and liabilities exceeding $164 million. The decision followed unsuccessful attempts to secure funding from the U.S. Department of Energy's Loan Programs Office and foreign investors. Prior to the filing, Canoo had idled its Oklahoma operations and placed employees on unpaid leave. Despite previous collaborations with organizations like NASA and Walmart, the company faced rapid cash depletion and struggled to raise additional funding amid uncertain demand for its vehicles.

• Canoo, an EV startup founded in 2017, has filed for Chapter 7 bankruptcy and has ceased operations.
• The downfall came after the company failed to secure funding from both the U.S. Department of Energy’s Loan Program Office and "foreign sources."
• Canoo managed to build a handful of electric vans for several clients, including Walmart and the USPS, over the past few years.

Canoo stated that it had been unable to obtain funding from the U.S. Department of Energy’s Loan Program Office and that its recent discussions to acquire capital from "foreign sources" also failed. The company is ceasing operations immediately.