Last Tuesday marked the end of the road at another 42 buy-here, pay-here dealerships operated by America’s Car-Mart.

Car-Mart president and chief executive officer Doug Campbell explained in a letter to shareholders that the company shuttered 31% of its store footprint that impacted about 18% of its outstanding customer base that is part of its $1.5 billion portfolio of outstanding receivables.

“We did not make this decision lightly and are taking these steps because they are the right thing to do for the long-term health of this business,” Campbell said in that letter about the move approved by Car-Mart’s board on April 7. “Our approach is to preserve liquidity and protect the runway this business needs to reach a sustainable outcome. This includes carrying less inventory than we would in a normalized operating environment and tightening underwriting standards, both of which will result in reduced origination volumes in the near term.

“We will continue to evaluate our entire store portfolio and will take additional action where needed,” he continued. “These are deliberate trade-offs designed to responsibly manage our capital position until additional financing is secured.”

In January, Car-Mart wound down operations at 13 locations after beginning a footprint reduction in November.

Campbell reiterated Car-Mart’s three priorities going forward include:

—Protect the company’s servicing and collections infrastructure

“Our approximately $1.5 billion finance receivables portfolio generates significant monthly cash collections,” Campbell said. “Maintaining the teams, technology, and processes that service these accounts is our highest priority.

—Keep cost structure in alignment with the company’s current scale

“The store closures and support staff reductions are designed to do exactly that,” Campbell said.

—Continue to pursue a warehouse credit facility or other revolving asset financing

“To this end, we have engaged with additional potential warehouse lenders,” Campbell told shareholders.

Car-Mart still has more than 90 rooftops in its footprint that’s concentrated in Arkansas, Oklahoma, Texas and Missouri.

“I believe in this business because our customers need transportation and financing,” Campbell said. “Our associates are committed to serving our customers and communities every day.

“The buy-here, pay-here model is durable, and the credit quality improvements we have built over the past two years are real,” he added. “The actions we are taking are designed to protect what we have built and position Car-Mart for the future.”