Back in late January, Canoo, the electric vehicle (EV) startup that once held contracts with the U.S. Army and NASA, filed for bankruptcy. This was a disappointing conclusion for a company that had initially generated significant excitement.
However, there might still be hope for Canoo and its intriguing electric pickup and cargo vehicles. According to reports, Anthony Aquila, the company’s chief executive officer, is aiming to purchase the remnants of the business. What this means for Aquila and the brand remains to be seen, but the journey might continue.
According to a TechCrunch report, Aquila has established a new entity with the goal of acquiring Canoo’s remaining assets for $4 million. This sale would reportedly eliminate the $11 million-plus in debt that Canoo accrued in its final months, debt owed to a company also run by Aquila.
Canoo filed for Chapter 7 bankruptcy in Delaware, a move that, as the company stated in a January press release, would “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.”
As TechCrunch reported, Canoo has approximately $145 million in assets, but these are offset by around $175 million in liabilities. The company reported about $12 million in cash and equivalents.
Interested parties had until March 28 to submit offers to acquire Canoo’s remaining assets. However, the bankruptcy trustee has suggested that Aquila’s purchase might be the best course of action, given his intimate knowledge of the company’s operations and the limited financing options in the current EV market.
Starting a car company, particularly an EV company, is notoriously difficult. Tesla’s remarkable success is an exception, not the rule. Recent history is filled with examples of struggling and failed vehicle manufacturers, including Nikola, a maker of all-electric and hydrogen-powered big-rig trucks that filed for bankruptcy and Fisker last year.
Looking back further, numerous car companies in the U.S. have failed, ranging from luxury brands to commercial vehicle manufacturers. Even established automakers aren’t immune to financial difficulties. Nissan is presently facing challenges and considered a potential merger, although one with Honda is officially off. During the Great Recession, both GM and Chrysler filed for bankruptcy, representing a significant challenge for the American automotive industry.
With fewer debts and potentially new leadership, Canoo might have a chance to rebound. However, if history is an indication, this will be a challenging undertaking.
