Car-Mart gets extra week to shore up finances
Image courtesy of the company.
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Just like how extensions are growing for consumers to make their monthly car payments, America’s Car-Mart also gained an extension to get its finances in order.
The buy-here, pay-here dealership chain previously had until Friday to secure new credit. Late that day, the company said through a filing with the Securities and Exchange Commission that it now has until this Friday.
The filing said Car-Mart requested and the agent — Silver Point Finance — and lenders agreed to extend the period covered by the lender forbearance.
“The company believes the parties have made significant progress and are nearing an amendment to the credit agreement that will resolve, at least on an interim basis, concerns related to anticipated or actual defaults under the credit agreement. To allow the parties time to complete this work and finalize the amendment, on June 12, 2026, the company requested and the agent and lenders agreed to extend the period covered by the lender forbearance through June 19, 2026,” Car-Mart said through the publicly traded company’s filing late on Friday afternoon.
“While the company believes that an agreement on an amendment to the credit agreement can be reached with the agent and the lenders, there can be no assurance that these discussions will result in any definitive amendment,” Car-Mart added.
Car-Mart shared in the previous filing that it formed a special committee of its board of directors — composed of chair Adam Paul, Joshua Welch, and Jonathan Buba — who are overseeing the company’s evaluation of strategic alternatives, including potential financing, recapitalization, restructuring, mergers and acquisitions, and other strategic transactions.
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The company indicated Houlihan Lokey Capital and FTI Consulting are serving as the Car-Mart’s financial advisors in connection with these efforts.
It’s been quite a season of turmoil for the company that’s based in Rogers, Ark., and has had a notable presence in Arkansas, Oklahoma, Texas and other parts of the Southeast and Midwest.
April 14 marked the end of the road at 42 dealerships operated by Car-Mart.
In January, Car-Mart wound down operations at 13 locations after beginning a footprint reduction in November.
