Vroom has sold ‘substantially all’ of its used inventory, expects to complete ecommerce wind down by end of Q1
Photo courtesy of Vroom.
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Vroom, which in January said it would be ending ecommerce operations and winding down its used-car retail business, said last week it expects to complete that wind down by the end of the first quarter and that it has sold “substantially all of our used vehicle inventory.”
The company, which also reported fourth-quarter and full-year 2023 fiscal results, said it has repaid the outstanding balance on its floorplan facility from Ally and has approximately $94 million in cash and cash equivalents as of the end of February.
Vroom is also trimming its “outstanding commitments and executing a reduction-in-force commensurate with our reduced operations,” the company said in a news release.
CEO Tom Shortt said in the release: “As we previously announced, in January 2024 Vroom’s Board of Directors approved a Value Maximization Plan pursuant to which the Company has discontinued its ecommerce operations and is winding down its used vehicle dealership business.
“I am incredibly proud of the commitment and professionalism demonstrated by our team as they execute an orderly wind down of our ecommerce operations with a focus on timeliness and cost effectiveness. We anticipate that the wind-down will be substantially complete by the end of the month and look forward to working to maximize stakeholder value through our remaining businesses, United Auto Credit and CarStory.”
Vroom reported a net loss of $365.5 million for full-year 2023 and a net loss of $141.3 million for Q4.
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