Electric Last Mile Solutions (ELMS), an electric vehicle startup, has announced it has filed for Chapter 7 bankruptcy.
“Ultimately, the Board determined, following a comprehensive review with the assistance of the Company’s outside advisors, and upon the recommendation of the Company’s management, that it is in the best interest of the Company and the Company’s stockholders, stakeholders, creditors, and other interested parties to file for Chapter 7 relief,” ELMS said in a statement.
The startup said a leadership team led by newly appointed interim CEO and President Shauna McIntyre had launched a review of the company’s products and commercialization plans and assessed its planned product offerings, production plans and certification processes.
The leadership team’s findings led to the resignations of ELMS CEO Jim Taylor and founding Executive Chairman Jason Luo, the statement said.
“I’m very disappointed by this outcome because our ELMS team demonstrated incredible determination to get our electric vans ready to meet the critical need for clean, connected vehicles that reduce carbon emissions from ground transportation,” McIntyre said in a statement, adding that she is proud of what the ELMS team has accomplished in a short time period.
“This is a viable and essential technology, and I am confident that many of our talented employees will play a future role in this energy transition effort,” McIntyre concluded.
The Michigan-based company went public last June through a merger with the Forum Merger III Corp., a blank check firm, CNN reported.
“For the past several months, the ELMS board and the new ELMS leadership team have worked nonstop to address legacy financial, governance and operational matters at the Company, and enormous progress was made, including towards vehicle certification” ELMB board Chairman Brian Krzanich said in a statement. “Therefore, it’s extremely frustrating that we must take this route, but it was the only responsible next step for our shareholders, partners, creditors, and employees.”
Author: Olafimihan Oshin