Electric vehicle startup Kano files for bankruptcy, suspends operations
The medium-duty electric vehicle space continues to shrink. Seven-year-old electric vehicle startup Kano has filed for Chapter 7 bankruptcy and announced it is shutting down operations immediately. A press release He noted that the liquidation process is being overseen by a bankruptcy trustee in Delaware bankruptcy court.
Kano Inc., once listed on the Nasdaq Composite under the symbol GOEV, has been a prominent player in the EV market, particularly in the electric cargo segment. The company has partnerships with NASA, the Department of Defense, the U.S. Postal Service, the state of Oklahoma, Walmart and other groups, but has struggled to find funding to sustain its operations.
The bankruptcy register mentions Unsuccessful attempts A significant factor leading to Kano’s bankruptcy was obtaining financing from the US Department of Energy’s Office of Loan Program. Efforts to get capital from outside sources did not stop the losses. He had a canoe. Total liabilities Over $164 million with nearly $126 million in assets.
“We want to thank the company’s employees for their hard work and dedication,” said Chairman and CEO Tony Aquila. “We know we believe in our company. We are truly saddened that things turned out the way they did. We also want to thank NASA, the Department of Defense, the United States Postal Service (‘USPS’), the State of Oklahoma, and Walmart for their trust in our products and our company. This means a lot to everyone at the company.”
Leading up to the bankruptcy, Kano faced several challenges that exacerbated its financial instability. In the final months before submission, The company was angry Her remaining employees and the factory in Oklahoma City were laid off. Despite a deal to deliver electric vans to high-end customers, Kano has struggled to scale production and secure widespread market adoption. of The company’s third quarter financial reports GAAP net loss for the year ended September 30, 2024 was $112 million, compared to $273 million for the same period last year, reflecting a continuing net loss.
Executive origins and strategic pillars are further aggravated Practical struggle. In October, CFO Greg Ethridge and general counsel Hector Ruiz were replaced by internal promotions. Under the leadership of Aqila, Kano turned It shifted its focus from consumer sales to commercial fleets, which included several changes in manufacturing strategies and operational adjustments. These changes have increased operating costs and reduced investor confidence.