Justin, Texas-based electric vehicle startup Canoo announced Friday it had begun bankruptcy proceedings and ceased operations, effective immediately.

Seven-year-old electric vehicle startup Canoo has filed for bankruptcy and will "cease operations immediately." The company is liquidating its assets in a

Canoo announced yesterday it is ceasing operations “immediately” and that it has filed for Chapter 7 bankruptcy in Delaware. The EV startup estimates in its filing that its assets are worth $126 million and that it owes over $164 million to its creditors, TechCrunch noted yesterday.

The move comes as the company failed to obtain support from the US Department of Energy's Loan Program Office.

Electric vehicle start-up Canoo has declared bankruptcy and will cease operations immediately, seven years after its launch.

Canoo said on Friday it would file for Chapter 7 bankruptcy and cease operations, effective immediately. The EV startup has been dealing with rapid cash burn and has struggled to raise additional funding amid uncertain demand for its microbus-inspired cargo vans.

Electric vehicle maker Canoo files for bankruptcy

Canoo, the electric vehicle startup that once promised to employ thousands of Oklahomans, filed for bankruptcy on Friday.