U.S. commercial electric vehicle maker Electric Last Mile Solutions Inc (ELMS) said on Sunday it plans to file for Chapter 7 bankruptcy, following a review of its products and marketing plans.
The move comes after the Troy, Michigan-based company disclosed a U.S. Securities and Exchange Commission investigation and withdrew all of its previously published March business outlook.
ELMS had said the SEC was investigating issues discussed in previous filings, including disagreements with an accounting firm and compliance with Nasdaq listing rules.
In February, then-CEO Jim Taylor and chairman and founder Jason Luo resigned, following an investigation into their stock purchases.
“The compound effect of these events, along with an ongoing SEC investigation launched this year, has made it extremely difficult to find a new auditor and secure additional funding,” ELMS said in a statement Sunday. .
The electric vehicle maker previously laid off around 24% of its staff as it focused on its core business.
Discover the stories that interest you
The company went public in June 2021 through a merger with blank check company Forum Merger III Corp.
Stay on top of tech news and the startups that matter. Subscribe to our daily newsletter for the latest must-have tech news, delivered straight to your inbox.