Fisker files for bankruptcy protection amid heavy losses and struggling EV market

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Manhattan Beach EV car maker Fisker has filed for bankruptcy protection after heavy losses and failing to find a large automaker partner.

Fisker Group Inc., the struggling Manhattan Beach electric vehicle manufacturer, has filed for Chapter 11 bankruptcy protection. After failing to secure financing to offset losses, the company reported in a filing with the U.S. Bankruptcy Court in Delaware that it had estimated liabilities of between $100 million and $500 million and more than 200 creditors. It listed estimated assets at between $500 million and $1 billion.

In a delayed annual report finally released in April, the company said it had delivered more than 6,400 Oceans as of April 16. However, its financial condition had continued to deteriorate. The company reported a cash balance of $326 million as of Dec. 31, which fell to $54 million in unrestricted funds as of April 16, according to regulatory filings. In February, Fisker announced layoffs of 15% of its workforce and a six-week pause in production to clear inventory.

 

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