Fisker Sells Assets in Chapter 11 Deal

Electric car pioneer Fiskar Group, known for its innovative approach to sustainable vehicles, has recently made headlines by filing for bankruptcy protection under Chapter 11. This move comes as the company faces financial challenges and looks to sell off its assets to restructure its operations.

Fiskar has been facing difficulties over the past few years, with the electric vehicle (EV) market downturn dealing a significant blow to its business. Despite its efforts to bring the Ocean SUV to market quickly and deliver on its promise of sustainability, the company has struggled to navigate the changing market landscape.

While the Chapter 11 filing in Delaware includes most of Fiskar's assets, the subsidiaries in Europe, including the headquarters in Munich, are not part of this process. A spokesperson for the company expressed optimism about the progress Fiskar has made but acknowledged the challenges that have led to this decision.

According to Fiskar, it has successfully shipped thousands of Ocean SUVs to customers in the US and Europe, commanding prices exceeding $100,000. However, the company cited "various market and macroeconomic headwinds" as factors that have hindered its operational efficiency and financial stability.

As Fiskar moves forward with the sale of its assets under Chapter 11, it aims to determine the value of its assets through the process. The company estimates the valuation to be between $500 million and $1 billion, with liabilities potentially reaching up to $500 million. This strategic decision is seen as a necessary step to address the current challenges facing the business.