EV Electric start-up Last Mile Solutions to declare bankruptcy

The ELMS Urban Delivery, slated for launch later this year, is expected to be the first Class 1 commercial electric vehicle available in the U.S. market and will be produced at the company’s facilities in Mishawaka, Indiana.

Last mile electrical solutions

Startup EV Electric Last Mile Solutions said late Sunday that it plans to file for bankruptcy less than a year after going public via a merger with a special-purpose acquisition company.

The Michigan-based electric commercial van maker said in a statement that interim CEO Shauna McIntyre and her board decided on Sunday to file for Chapter 7 bankruptcy, which will allow it to wind up its assets, after a “full review of the company’s products and go-to-market plans” did not prove to be a better option for stakeholders.

The public offering of ELMS, in late June 2021, came amid a flurry of SPAC deals that took EV makers public. The company is the first of these post-SPAC electric vehicle makers to say it will file for bankruptcy.

McIntyre has served as interim CEO since February, when founder Jason Luo and then-CEO Jim Taylor left the struggling start-up after an internal investigation found the company’s past financial statements weren’t accurate. were unreliable.

ELMS said in a statement that those executive departures and a related investigation by the Securities and Exchange Commission had made it “extremely difficult” to secure additional funding.

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