LOTZ - CarLotz shutters 50% of its stores to focus on profits

CarLotz, Inc. (NASDAQ:LOTZ) announced the closure of 11 dealership stores on June 21 as part of a strategic review of the business. The retailer said cash preservation and future profitable growth were the key determining factors in which stores or hubs were shuttered. In addition to the closures, three LOTZ locations with executed leases will not be opened.  The closures will result in an estimated workforce reduction of 25% to 30%. The closures should reduce loss from operations by approximately $12M  to $13M on an annualized basis.  Looking ahead, CarLotz (LOTZ) will focus on growing the remaining hubs which it believes will produce the highest future growth potential, highest profit potential, and the most attractive sourcing opportunities. "While decisions that impact our teammates are not taken lightly and are not easy, we believe the hub closures are a necessary step to help improve the Company’s financial performance," stated CarLotz CEO Lev Peker. Shares of

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CarLotz shutters 50% of its stores to focus on profits