Vroom, Inc. VRM shares are trading lower in Monday’s after-hours session after the company announced it is discontinuing its operations and winding down its used vehicle dealership business.
Unexpected Turn of Events: Vroom sent shockwaves through the market with its unexpected announcement after the close of Monday’s trading session, causing shares to plummet by over 50%. The company revealed its decision to halt operations in an effort to preserve liquidity and maximize value for stakeholders.
The company’s board of directors expedited a Value Maximization Plan, which includes halting transactions via vroom.com, liquidating existing used vehicle inventory through wholesale channels, discontinuing the acquisition of additional vehicles, and implementing a workforce reduction to align with its scaled-down operations.
Bleak Words from the CEO: Thomas Shortt, Vroom’s CEO, expressed the company’s frustration, stating, “We set out to build a well-oiled machine, improve unit economics, and dramatically enhance our customer experience. We achieved these goals, yet were unable to secure the necessary capital in the current market.” Shortt also thanked the company’s employees, customers, business partners, board of directors, and investors for their unwavering support.
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Stock Plummets: Vroom’s stock price nosedived by 55.67% to $0.23 in after-hours trading at the time of publication, as reported by Benzinga Pro.
Photo: Oleg Gamulinskii from Pixabay
