Electric Last Mile Solutions plans to file Chapter 7 bankruptcy soon

By Sarah Lizee

Olympia, Wash., June 14 – Electric Last Mile Solutions, Inc. said it plans to file for Chapter 7 bankruptcy.

In February, following the resignations of Jim Taylor, the company's former chief executive officer, and Jason Luo, the company's founder and former executive chairman, Electric Last Mile appointed board member Shauna McIntyre as interim CEO and president.

The company said that, based on the findings of the same board-initiated investigation that led to the resignations of Taylor and Luo, the company had to withdraw financial guidance and declare its past financial statements unreliable.

“The compound effect of these events, along with a pending SEC investigation initiated this year, made it extremely challenging to secure a new auditor and attract additional funding,” the company said in a news release.

Electric Last Mile said it tried to raise new sources of capital and worked closely with advisers to assess and improve its liquidity position. Ultimately, the company found that it is in the best interest of Electric Last Mile and its stockholders, stakeholders, creditors and other interested parties to file for Chapter 7 relief.

“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,” said Brian Krzanich, Electric Last Mile board chair and former CEO of Intel, said in the release.

“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.”

In the company’s September 2021 financial statements, cash and short-term investments were listed at $170.9 million, while total liabilities were listed at $117.01 million.

Electric Last Mile Solutions is a Troy, Mich.-based pure-play commercial electric vehicle company.

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