(Reuters) – U.S. business electrical car maker Electric Last Mile Solutions Inc (ELMS) mentioned on Sunday it’s planning to file for Chapter 7 bankruptcy, after a assessment of its merchandise and commercialization plans.
The transfer comes after the Troy, Michigan-based firm disclosed a probe by the U.S. Securities and Exchange Commission and withdrew all its beforehand issued enterprise outlook in March.
ELMS had mentioned the SEC was investigating issues mentioned in prior filings together with disagreements with an accounting agency and compliance with the Nasdaq’s itemizing guidelines.
In February, the then Chief Executive Officer Jim Taylor and Chairman and founder Jason Luo resigned, following an investigation into their share purchases.
“The compound impact of those occasions, together with a pending SEC investigation initiated this yr, made it extraordinarily difficult to safe a brand new auditor and appeal to extra funding,” ELMS mentioned in a press release on Sunday.
The EV maker beforehand laid off about 24% of its employees because it focussed on its core enterprise.
The firm went public in June 2021 by a merger with blank-check agency Forum Merger III Corp.
(Reporting by Baranjot Kaur in Bengaluru; Editing by Shailesh Kuber)
