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EV startup files for Chapter 7 bankruptcy

On Behalf of | Jun 15, 2022 | Bankruptcy

Throughout Kentucky, some people earn a living working for companies in the technology industry. Unfortunately, inflation and other economic concerns have left the tech sector in shambles. As companies begin creating harsher outlooks for their financial futures, others are making announcements that they’re filing for bankruptcy.

What led to Electric Last Mile Solutions announcement

Less than one year ago, Electric Last Mile Solutions, a start-up business in the electric vehicle industry went public. This came to be after it merged with an acquisition company. Seeing this company going public wasn’t a huge shock to many at the time, especially since several EV companies were also going public.

According to CNBC, problems soon followed Electric Last Mile Solutions after it went public. One of the most notable pieces of news involved this company’s former CEO and Chairman leaving after an internal investigation into this company revealed a history of unreliable financial statements.

How your business can avoid Chapter 7 bankruptcy

As news of this commercial bankruptcy spreads, many business owners are wondering what they can do to avoid declaring bankruptcy. Experts recommend either negotiating or settling business debts as soon as possible.

Another recommendation is to look into what your company can sell now to have enough capital to get through difficult times. For instance, liquidating properties, equipment and other assets right now can raise enough funds to pay off business debt.

To wrap things up, Electric Last Mile Solutions recently announced that it will file for Chapter 7 bankruptcy. As of this time, there’s no better option for this EV start-up than to liquidate all of its assets as soon as possible.