Thursday, July 18, 2024
NewsFisker Files Bankruptcy Protection

Fisker Files Bankruptcy Protection

Fisker Group filed Chapter 11 yesterday

  • Company hoping to restructure

  • EV startup has seen production, sales issues


Electric automaker Fisker has filed for bankruptcy protection. The company is hoping to sell some assets and restructure debt, with a focus on keeping the company going.

“Fisker has made incredible progress since our founding, bringing the Ocean SUV to market twice as fast as expected in the auto industry and making good on our promises to deliver the most sustainable vehicle in the world,” said a Fisker spokesperson. “We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers’ hands in both North America and Europe. But like other companies in the electric vehicle industry, we have faced various market and macroeconomic headwinds that have impacted our ability to operate efficiently. After evaluating all options for our business, we determined that proceeding with a sale of our assets under Chapter 11 is the most viable path forward for the company.”

The automaker has filed for Chapter 11 protection in the state of Delaware. Chapter 11 gives comnpanies the chance to try and resolve the financial situation, though the company’s pause on producing new vehicles continues. In the statement, Fisker said that it was in “advanced discussions” with its stakeholders on the asset sale.

Fisker had previously said it was in talks with an established automaker that could keep it going. Those talks have ended without a deal, one of the factors leading to bankruptcy protection. Fisker Group estimated assets of between $500m and $1b with liabilities from $100m to $500m. Major creditors include Adobe, Google, and SAP.

The company’s sole production vehicle was the Ocean electric SUV. The model has seen scathing reviews focusing on quality issues. It has also had problems with moving from an in-house to a dealer-based sales model.

 

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