Last Price$0.48NASDAQ Closing Price as of 4:00PM ET 8/19/22

Today's Change-0.03(6.73%)
Bid (Size)$0.48 (2)
Ask (Size)$0.49 (6)
Day Low / High$0.47 - 0.51
Volume1.1 M

CarLotz Closes Half of its Stores to Preserve Cash, Improve Profit

4:40PM ET 6/21/2022 MT Newswires
CarLotz (LOTZ) said Tuesday it is closing 11 dealership stores to preserve cash and to improve its profitability following a strategic review of its business.

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.