Luminar Technologies has filed for Chapter 11 bankruptcy protection in Texas as it seeks to sell its core LiDAR business following the loss of a key supply contract with Volvo Cars and mounting financial strain.

The Austin-based sensor maker entered bankruptcy with the backing of most of its lenders, securing support from roughly 91% of first-lien and 86% of second-lien noteholders, along with access to $25 million in cash to fund operations during the sale process.

As part of the restructuring, Luminar Semiconductor will be sold to Quantum Computing in an all-cash deal valued at $110 million.

Court filings show Luminar holds $100–$500 million in assets against $500 million to $1 billion in liabilities.

The filing follows loan defaults, workforce cuts, an SEC investigation, and the termination of its Volvo agreement, which significantly worsened its financial position.

The company plans to continue operating during the bankruptcy process but expects to wind down once asset sales are completed.

Founder Austin Russell, who stepped down as CEO earlier this year, has indicated he intends to bid for certain Luminar assets.

The collapse highlights broader headwinds in the autonomous driving supply chain as automakers slow investment and shift risk onto technology suppliers.