The closures will cut its workforce by 25% to 30%, reducing the loss from operations by $12 million to $13 million annually, assuming that it will be unable to sub-lease any locations, the company said. Three locations with executed leases will not be opened.
"The hub closures are a necessary step to help improve the company's financial performance," said CEO Lev Peker. It expects to complete the closings by July 8.
CarLotz said it expects one-time non-cash charges of $2 million to $5 million on the impairment of lease assets and $5 million to $6 million on other fixed assets.
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