When you move out of a leased property, you’re supposed to return it in the same condition you found it. You can’t be leaving trash everywhere, let alone barrels of waste or bits of old vehicles. As it turns out, Fisker’s ungainly exit from its former headquarters might have left rather an ugly mess behind.
As reported by TechCrunch, the tale is told in a legal filing on Fisker’s Chapter 11 bankruptcy. In addition to owing millions of dollars to creditors like Adobe, Google, and NBC, Fisker also managed to seriously piss off its landlord, Shamrock (La Palma) Properties II, LLC. A submission states that the facility leased to the beleaguered automaker was pretty much trashed when the keys were handed back late last month.
The document reveals that Tony Lenzini, a representative for the landlord, took possession of the premises on September 27, only to find a great deal of property and waste material left behind. “Shamrock now faces tens of thousands of dollars in cleanup costs, damage repairs, and what appears to me to be hazardous waste removal,” said Lanzini.
A Timeline
Fisker leased the commercial premises in La Palma, California back in April 2022. It later moved its headquarters to the facility in May this year, having abandoned its fancier digs in Manhattan Beach as the money dried up. Court documents indicate the 78,980-square-foot facility had parking for 213 automobiles, with a base rent exceeding $80,000 a month.
Fisker later filed for bankruptcy in June, and it became apparent to the landlord that the company would likely “reject the lease as of the end of September.” Ahead of this, Lenzini sought to gain clarity over what the plan was regarding the La Palma facility. The status of Fisker at this point complicated matters. A company called Heritage Global Partners had apparently purchased some assets on the site, while a group called Huron Business Advisory was acting to manage the restructuring of the failed company.
Corporate collapse spelled out in three simple images.
Lenzini claims he undertook a walkthrough with Huron and Fisker representatives on September 24, and was told that “Nick from Heritage Global Partners would have everything removed by end of day Friday and that the building would be cleaned as thoroughly has [sic] possible.”
It appears that there was an attempt to clean up that failed entirely. In the intervening days, Lenzini noticed people coming and going, grabbing random items and equipment and loading them on trucks. When the morning of the last day came around, the facility was a maelstrom of activity:
I witnessed people hurriedly removing property from the building and loading vehicles with various items. I have no idea who these people were – whether they were Fisker employees, HGP, Huron staff, or friends of either. People were throwing debris everywhere, taking tools, computers, automotive parts, and more, and then returning for another load.
-Tony Lenzini
A Fisker representative named “Fernando” apologized to Lenzini, but stated the facility would still be handed back later that day. He received the keys to the La Palma facility that evening, but offered to stick around for the weekend to allow Fisker’s people more time to remove unspecified vehicles left in the parking lot and remaining items. Ultimately, only one employee showed up, and he says no real further progress was made.
Photos of the aftermath show the facility in total disarray. There are chairs, tables, appliances, and documents scattered all over the place. There’s also a large metal frame assembled out of what appears to be aluminum extrusion, and a full-scale automotive interior model of some sort, too. Fisker also apparently left behind two full-size clay models. One poorly-finished model is clearly a pickup truck, and the other is in the shape of a sleek coupe-like vehicle.
There was also some “hazardous waste” left behind to frustrate matters. According to Lenzini, there appear to be two large drums of oil and coolant, along with a funnel device filled with what appears to be waste oil, along with various other small bottles of chemicals. There are also “approximately 20 automotive-sized batteries” left behind, which appear to be lead-acid car batteries based on the photos. The problem for the landlord is that these materials all need to be disposed of properly, at greater expense than simply chucking everything in landfill. It’s also generally no bueno to abandon hazardous waste in the eyes of the law, and someone is clearly responsible here.
Lenzini has since been fielding multiple calls from “various people” asking for access to the facility to obtain items in the building. This has included people claiming to be or ex-employees wanting to source spare parts. He reports that he is unsure who has been handing out his phone number for this purpose.
At this stage, the landlord finds itself in a difficult position. It has no idea who actually owns the property remaining in the facility, or whether it has been abandoned entirely. The fact that so many people have been calling to gain access to La Palma suggests one or more third parties may have an interest in property left behind. The landlord is requesting clarification on these points so it can ideally clear the property, including any hazardous waste, and return it to a clean state ready for a new tenant. In the meantime, the facility has been locked and left in its current condition. “I am treating La Palma as if it were a crime scene with no property leaving until I receive further direction,” stated Lenzini.
In the most basic terms, Fisker’s collapse has proven to be an ugly one. The company has fallen so flat on its face, that it’s asking customers to cover the costs of recalls. It’s liquidated the last of its stock for ridiculous prices. And now, it’s left its emergency headquarters in a shambles. Sadly, when the money runs out, there’s precious little left for mopping up the damage. Shame.
Image credits: via legal filing
It’s a shame they didn’t survive. I really liked the Pear concept but the new Kia EV3 is close enough to satisfy me – and will be better built no doubt.
In the picture with the caption “Whatever this was…,” there appears to be a vehicle of some kind in the top left. Maybe another prototype?
Sure looks like one.
I understand the oven, but why did they need a chest freezer? D:
Any commercial landlord will tell you a bankrupt big-company tenant is one of the worst things to deal with. The owners floated away on their golden parachutes, middle management, if they’re still around, are powerless to do anything, and the rank and file workers are all pissed off and just want to steal stuff and burn the place down after their severance checks bounced. And lots of the valuable shit left in the building actually belongs to someone who isn’t the tenant (equipment lessors etc), so you can’t just remove it and re-rent the joint; you have to wait for a bunch of lawyers and a bankruptcy court to sort through it all.
These landlords leased the property to Fisker in May when it was already quite well known the ship was going down. Where is that World’s Smallest Violin when you need it?
I had a friend go through a big-company bankruptcy. He was just a middle-manager grunt at a local office and walked in one day to find out everyone was laid off. The police were outside to escort everyone off the property, but were there on the behest of the landlord to make sure the damage was minimal. People were grabbing computers, monitors, and pretty much anything else not bolted down and with some value and were running out the door with no hindrance from the cops. My friend just boxed up his stuff and stood outside the office watching the chaos until it died down enough for the landlord to realize that no one was left to clean up the junk the employees didn’t grab. When the landlord asked who was going to finish cleaning out of the office, my friend just shrugged and responded “I don’t know. You’ll have to find someone who works here.”
Sometimes I review proposed tenant alteration plans on behalf of building managements. I make sure that whatever alteration they intend to implement could be reversed quickly and (relatively) inexpensively. Clauses about restoring the space at the end of lease means squat when the tenant goes under.
They didn’t sign the lease in May, it was a secondary facility that they had all along where design and engineering functions were getting done, the executive offices and administrative departments were at the headquarters in Manhattan Beach, as Fisker went down the toilet, they cancelled the lease on the headquarters and moved all their vastly downsized staff into this space alongside the designers for a few more months until they had to give it up too
Has anyone ever given their car a “rough clay model” wrap?
Wow, even the clay model convertible broke before it left the factory 🙁
Anyone else surprised Fisker had more in there than a jar of mustard and a couple issues of Psycho magazine?
Just take them to Autozone oil dropoff.
Am I the only one who dislikes mesh back office chairs? Apparently yes? Well shit…
You are not alone. When WFH got me I hit up used office furniture stores and skipped over the “fancy” mesh chairs and wound up with a nice leather padded number that is much more comfortable.
I dislike sweating from the pleather chairs’ lack of airflow you inevitably get after sitting at a desk for a while. The ventilation, for me, is appreciated.
A non-mesh seat kinda ruins it though.
I think cloth is really underrated honestly.
No you are not, I’ve always found them uncomfortable and think they look like crap, too
I prefer “fine, soft, or rich Corinthian leather” because it’s “something rich in quality, rare, and luxurious” according to Wiki
Is that supposed to sound like a lot? Would have been nice if they cleaned up after themselves but for a place that was getting over $80k/mo rent it shouldn’t exactly be a hardship and they can add that to the list for bankruptcy proceedings to possibly get a cut.
Depends on how much they spend on the building and how long it’ll be before they get another tenant.
While I don’t think there is a universe out there in which I would buy a Fisker, because I think he is a snake and a terrible human being, I do have to admit that the convertible is striking. The post called it a coupe, and maybe it is, but there’s no B pillar, and the shape of the roof looks like it was intended to be a soft top, and it looks quite nice.
Look, the guy knows how to design an attractive car, nobody’s disputing that point, but that’s about the only thing involved in running a car company that he should be allowed to touch
Well, the good news here is La Palma isn’t too far from the ocean, which should make the eels very happy.
Someone’s gotta charge ’em after all.
All they have to do is give them to Torch so he can let loose on them w/ his chainsaw for Halloween!
Can you fire that clay model an make it ceramic?
I’ve used that Lisle oil collector in my shop for 15 years. Highly recommended!
Well at least they didn’t have to worry about the pet deposit.
Too bad, that convertible is a good looking car.
Gee, a failed business leaving behind a huge mess for someone else to clean up?
Who would’ve thought?
Sounds like someone we know.
Speaking as a State regulator we have this problem a lot. Usually because someone intentionally dumped material on someone else’s property to dodge paying for proper disposal. Unfortunately, if it’s your land it’s also your waste until such time as you can prove who it belongs to. (I mean, this case is pretty easy, we obviously know who it belongs to) But, until you have someone you can bill or sue for the charges, you’re on the hook for proper disposal.
Out here in fly-over country we guestimate that a Hazardous Waste Service Provider is going to charge you $1,000+ in mobilization. Which is to say, a grand for them to show up at your door before they actually do anything. Proper waste characterization can be hundreds per sample, and every container you can’t prove what’s in it must be sampled. Then, depending on what waste(s) you have, the costs for actual disposal start around $1/lb and go up a lot from there depending on what freaky stuff is in your drums. Getting someone to come pick up a single 55-gal drum of unknown waste is likely to set you back two grand minimum.
So, yeah, not cheap to deal with someone else’s problems on your property.
What always cracks me up every time I see this is that they always make some kind of token effort – like someone was decanting (re-canting?) something into that jerry-can-on-wheels-funnel-contraption. And then, at a magical moment, they all run out of fucks to give.
That is a common oil drain for use on a lifted vehicle. So chances are whatever is in it came straight out of a vehicle. I’m guessing it is whatever oil they use in the final drive unit.
Not Herman Miller chairs but spendy none-the-less:
Haworth Zody Standard Posture Mesh Office Chairhttps://www.amazon.com/Haworth-Standard-Posture-Office-Chair/dp/B0C5V1Q419?th=1
Aeron chairs are amazing and last forever (got the one my butt is warming during the dot com collapse). They run $1,200 new but you can find them for a third of that. the one above looks to be about $900 new.
If I was the landlord, I will lock the building not allowing Fisker come back and sell everything, including the clay models for some rich guy as a piece of furniture.
The aftermath of the dot com bubble was terrific for cheap aeron chairs (or sometimes free, if you happened to work in that industry).
Uh…. or so I’ve heard.
Can confirm. I’m sitting in mine right now. 😉
Same here.
They are like used sports cars, I would never drop the money for a new one but they get a few miles on them and depreciate they can be worth it, specially if it’s free.
Yep, ended up with two. One finally had the controls for the back to fail so took off everything but the seat, pedestal, and wheels, making it my mechanics chair.
When the company I worked for at the time went bust our office had over a hundred new (with tags, never sat in) Aeron chairs that they offered to employees for a couple hundred a pop. At the time I didn’t have $$$ nor a place to store them so passed – the market was swimming in them. I’m very sure that more than one or two (especially used ones) simply rolled away without anyone noticing, although I did buy mine.
I dunno what that silver cage contraption is in Corporate Collapse photo #3, but imagine the Gran Turismo rig you could build out of it…
(leans back in office chair) why yes, it is a good way to scoop up a bunch of fancy furniture. I have a feeling lots of laptops were “lost” or “damaged by water” during the cleanup as well…. 🙂
A Swiffer will clean that right up.
Ran when parked, 1 of 1, California vehicle no rust.
No lowball offers, I know what I have…
I wonder if they will sell the coupe. And if they do, how much would it cost?
This is what cleaning and security deposits are for.
Any additional cost is also a tax deductible business expense.
No pity for landlords.