Fisker has reportedly hired lawyers from Kirkland & Ellis in preparation for a possible bankruptcy filing.

Fisker has reportedly hired lawyers from Kirkland & Ellis in preparation for a possible bankruptcy filing.

The Wall Street Journal says two sources have confirmed the company is exploring a possible bankruptcy as it continues to look for potential partners. However, bankruptcy could be the only remaining option as discussions with Dongfeng and Geely have reportedly broken down without an agreement.

A Fisker spokesperson declined to comment on the report, but the company recently furloughed their entire U.S. workforce to save cash ahead of a loan payment to the U.S. Department of Energy on April 22nd.

The bankruptcy rumor is just the latest in a long line of bad news which includes production delays, fire-related recalls, the bankruptcy of the Karma's battery supplier and the high-profile resignation of Henrik Fisker who left the company over "several major disagreements" with executive management.