– U.S. electric vehicle maker Fisker (OTC:) filed for bankruptcy protection late Monday as talks over a deal with the major automaker fell apart, putting the startup at risk of quickly running out of cash to supply Ocean SUVs to the United States and Europe. .
The company’s unit, Fisker Group Inc., filed for Chapter 11 bankruptcy, listing estimated assets ranging from $500 million to $1 billion and liabilities ranging from $100 million to $500 million.
The breakdown of talks with the major automaker has left Fisker looking for strategic options, including in-court or out-of-court restructurings and capital markets deals, the startup said earlier this year.
Although Fisker did not name the company, Reuters reported that Japanese automaker Nissan (OTC:) is in talks to invest in the startup.
The company, founded by car designer Henrik Fisker, expressed doubts in February about its ability to remain in business and suspended investment in future projects until it secured a partnership with the automaker.
Limited access to capital in a high-interest rate economy, costs associated with vehicle marketing and distribution, and slower-than-expected demand for electric vehicles have reduced the company’s cash reserves.
Weak demand growth for electric vehicles has particularly hit startups like Fisker, while rivals are cutting jobs and delaying expansion plans to save money.