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Bankruptcy Rumors Loom As Anaheim-Based Fisker Furloughs Employees

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(credit: Brady Holt, Examiner.com)

(credit: Brady Holt, Examiner.com)

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ANAHEIM (CBSLA.com) — Anaheim-based Fisker Automotive Inc. has furloughed its employees two weeks after the company’s founder, Henrik Fisker, resigned as executive chairman during a management dispute.

The office has been closed since Friday, March 22, and will remain closed through Sunday, March 31.

The company is attempting to cut costs as it faces an April 22 deadline to make a payment on a loan from the U.S. government, according to the Wall Street Journal.

The car-maker stopped manufacturing its electric-gas hybrids last July and has faced recalls associated with its lithium-ion batteries, according to the Orange County Register.

The company, which once employed roughly 600 workers, says 220 workers will return to work on Monday.

Reports that Fisker may be preparing to file for bankruptcy could not immediately be confirmed.

Celebrity clients include Justin Bieber and Ashton Kutcher.

(©2013 CBS Local Media, a division of CBS Radio Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. Wire services contributed to this report.)

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