Shift Technologies (NASDAQ:SFT) stock is crashing on Monday after the e-commerce company said it would file for Chapter 11 bankruptcy protection.
According to a press release from Shift Technologies, it would use this bankruptcy filing to allow for the orderly wind-down of its business. The bankruptcy filing includes the main company, as well as all of its subsidiaries.
Shift Technologies notes it has already closed its two locations in Oakland and Pomona, California, as well as its website. The company intends to use funds from the liquidation of its business to operate through the bankruptcy filing.
Ayman Moussa, CEO of Shift Technologies, said the following about the planned bankruptcy filing:
“This was not the outcome we had expected or hoped to achieve. This decision follows months of trying to raise capital and restructure the balance sheet to allow the Company to operate unencumbered in this challenging environment. Ultimately, the extensive efforts of our senior leadership team and advisors were not successful.”
What This Means for SFT Stock
Considering Shift Technologies is planning to close down its business with this bankruptcy filing, SFT stock won’t remain around for much longer. That’s why it makes sense the company’s shares are experiencing such a massive drop in price today. Investors are selling shares before they lose all of their value.
This has around 1.2 million shares of SFT stock changing hands as of this writing. That’s already above its daily average trading volume of about 221,000 shares. It also has SFT shares down 85.9% as of Monday morning.
Investors seeking even more of the most recent stock market stories for Monday will want to keep reading!
We have all of the biggest stock market news that investors need to know about this morning! A few examples include what has shares of Maris Tech (NASDAQ:MTEK) and ParaZero Technologies (NASDAQ:PRZO) stock up today, as well as the biggest pre-market stock movers this morning. You can find more on these matters at the links below!
More Monday Stock Market News
- Why Is Maris Tech (MTEK) Stock Up 27% Today?
- Why Is ParaZero Technologies (PRZO) Stock Up 62% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Monday
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
