Electric van startup Canoo has filed for bankruptcy and announced that it is ceasing operations “immediately” and liquidating its assets.

Canoo has now filed for Chapter 7 bankruptcy

The American firm, which was working to reinvent the sector with its futuristic-looking vans, said it had failed to get support from either the US Department of Energy’s Loan Programs Office or foreign investors and has now filed for Chapter 7 bankruptcy in Delaware.

The filing will 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.

It’s the latest company to go under in the challenging electric commercial vehicle sector; the news comes nearly a year after Arrival collapsed in February 2024, while Volta Trucks went into administration in October 2023 and exited in December under new owner, Luxor Capital.

Canoo was formed in California in 2017 and was developing breakthrough electric vehicles to reinvent the automotive landscape with “bold innovations in design, pioneering technologies, and a unique business model that defies traditional ownership to put customers first”.

The line-up included the Lifestyle Delivery Vehicle (LDV) electric van – available in LDV190 and LDV130 sizes and already deployed by NASA, Walmart and the US postal service – and a pickup truck. The business had also opened operations in the UK ahead of its planned launch here this year, and had just started a pilot with Royal Mail.

Tony Aquila, Canoo chairman and CEO, said: “We would like to thank the company’s employees for their dedication and hard work. We know that you believed in our company as we did. We are truly disappointed that things turned out as they did.

“We would also like to thank NASA, the Department of Defense, the United States Postal Service (USPS), the State of Oklahoma and Walmart for their belief in our products and our company. This means a lot to everyone in the company.”

A court-appointed trustee will now manage the liquidation of the company’s assets and Canoo said its team would collaborate closely with the Delaware Bankruptcy Trustee to assist with the process.