Fisker files for bankruptcy

California EV start-up will sell off assets after months of circling the drain

Fisker files for bankruptcy
Fisker issued a going concern warning in March

California EV start-up Fisker will file for Chapter 11 bankruptcy and sell off its assets, ending months of speculation about the potential collapse of the automaker.

The filing will come as little surprise after Fisker has struggled through months of doubt about its future since a large OEM — widely rumoured to be Japan's Nissan — pulled out a partnership that would have provided vital life support for the EV start-up.

The automaker now says it is "in advanced discussions with financial stakeholders regarding debtor-in-possession financing and the sale of its assets".

Fisker's ongoing pause in manufacturing, in place since March, will continue throughout the bankruptcy process, although the company intends to continue certain reduced operations, pending approval by the bankruptcy court.

Fisker was hit with a New York Stock Exchange non-compliance notice in February for consistent failure to have a sufficiently high share price, soon before its OEM partnership pulled out of negotiations to fund the struggling start-up. The firm subsequently issued a going concern over the future of its operations, and has since pursued a number of financing moves and layoffs.

Last month saw the largest round of layoffs which largely targeted the marketing and charging units of the OEM. And its contract manufacturer Magna said as early as the start of May it was expecting no more Fisker Ocean vehicles to be made.

 “We are proud of our achievements, and we have put thousands of Fisker Ocean SUVs in customers’ hands in both North American and Europe," Fisker says. "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."

Fisker becomes the second automotive start-up founded by eponymous CEO Henrik Fisker to go bust, after the similarly named Fisker Automotive was auctioned off to China's Wanxiang Group in 2014.

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