Report: Fisker Hired a Bankruptcy Consultant Ahead of Possible Restructuring


report fisker hired a bankruptcy consultant ahead of possible restructuring

Fisker is on the ropes, telling investors that there were doubts it could continue operating without significant outside investment. Last week, it appeared that the help could come from Nissan in the form of a $400 million investment and tech-sharing agreement, but the company is now reportedly seeking help with a potential bankruptcy filing.

Electrek reported on the Wall Street Journal story, noting that Fisker’s unique contract with manufacturing partner Magna Steyr cuts into its profit margins but prevents runaway operating costs. Despite that, and the fact that Fisker said its Ocean SUV is profitable, running a car company is not for the weak or shallow-pocketed.

The automaker has seen challenges with its direct sales model, reaching a decision to move toward a more traditional sales model with dealer partners. While under-production has been an issue for some companies, Fisker has around $530 million of inventory to move. News of Fisker’s search for representation has not been kind to the company’s stock price, which fell 45 percent after hours.

It’d be easy to poke fun at Fisker, as this is the second time its founder has been through the wringer with a new car company. That said, the automaker’s designs and tech, particularly its pickup truck, would be useful to a company like Nissan or a similar firm. While it would be disappointing to lose an entire brand, Fisker can at least take some pride in the fact that it created novel designs and met its production timelines.

[Image: Fisker]

Become a TTAC insider. Get the latest news, features, TTAC takes, and everything else that gets to the truth about cars first by  subscribing to our newsletter.

Source link