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June 13 (UPI) -- Electric Last Mile Solutions, an electric vehicle startup once worth as much as $1.4 billion after it went public last year, has announced plans to file for Chapter 7 bankruptcy. Shauna McIntyre, the company's interim CEO, decided Sunday with the company's board to liquidate after a review of the company's products, Bloomberg and CNBC reported.
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The company, which sold electric urban delivery trucks and vans, went public in June 2021 through a merger with a special purpose acquisition company amid a surge in such deals with electric vehicle makers.
Share prices in the company had tanked 93% as of the close of trading last week and had dropped another 55% in premarket trading. The official bankruptcy filing is expected in the next few days.
"I'm very disappointed by this outcome because our ELMS team demonstrated incredible determination to get our electric vans ready to meet the critical need for clean, connected vehicles that reduce carbon emissions from ground transportation," McIntyre said in a statement to Bloomberg.
"Unfortunately, there were too many obstacles for us to overcome in the short amount of time available to us."
McIntyre has served as the interim CEO since February when founder Jason Luo and former chief executive Jim Taylor left the company.
The company said it was under investigation by the U.S. Securities and Exchange Commission just weeks after Luo and Taylor left and cut 24% of its workforce, CNBC reported.
Brian Krzanich, the chairman of the board and former CEO of Intel, told Bloomberg that the decision was "extremely frustrating," adding that it was "the only responsible next step for our shareholders, partners, creditors and employees."
