JUSTIN, TX — Update: Canoo announced Friday evening the company had filed for Chapter 7 bankruptcy.
In a news release, Tony Aquila, 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.”
Canoo will cease operations immediately.
The electric vehicle company Canoo announced on Dec. 18 that it's furloughing Oklahoma employees and idling its factories in the state.
In 2021, the company committed to building a factor in Pryor, which is one of the factories that will temporarily cease production.
Canoo said in a press release that it's furloughing 82 employees, both salaried and hourly. 2 News is working to learn how many people Canoo employs in total.
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The company said it made the decision as it "works to finalize securing the capital necessary to move forward with its operations."
“We regret having to furlough our employees, especially during the holidays, but we have no choice at this point. We are hopeful that we will be able to bring them back to work soon," the company said.
2 News spoke to former employee Cyle Briggs. He said he worked for Canoo for three years at their Pryor battery plant and Oklahoma City manufacturing facility but decided to leave on his own.
"I was on the furlough list Nov 1, I beat the race, I left on my own decision," said Briggs.
Last year, Canoo finalized incentive agreements with the state of Oklahoma and the Cherokee Nation for $113 million over ten years. The state also purchased three vehicles for just under $120,000.
2 News contacted the governor's office to ask what's happening with the contracts and if they will consider getting their money back from Canoo.
Briggs said he's concerned for his former co-workers, especially around the holidays.
"These people have kids, families, and you're going to let them go a week before Christmas. It's sad to see that happen," said Briggs.
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