Beleaguered EV maker Fisker Inc. (NYSE:FSRN) is reportedly closing down its Manhattan Beach headquarters, and relocating employees to its La Palma site.
What Happened: The electric vehicle (EV) manufacturer has initiated the relocation of its Manhattan Beach, California office, Business Insider reported, citing three sources familiar with the matter.
This move comes amid a challenging period for Fisker, with the company’s financial situation deteriorating.
Some employees at the Manhattan Beach office have been informed of the relocation and have been asked to prepare for the move by collecting their belongings, the report said.
The two facilities are approximately 40 miles apart in California, with the Manhattan Beach office being leased by Fisker in 2020. The La Palma site, on the other hand, was initially meant to be a research and development space, the report noted.
Why It Matters: The company’s financial struggles have been well-documented, with Fisker repeatedly warning of potential bankruptcy. Late last month, the company said that it expects to seek protection under bankruptcy laws within 30 days if unable to receive waivers from its debt holders or raise enough capital to settle its dues.
The company had unrestricted cash and cash equivalent of just $53.9 million as of April 16.
However, the company is continuing to expand its dealer partner locations. Last week, it added six new locations, including three dealer partner locations in California and three in Missouri, Guam, and Pennsylvania.
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