Vroom (NASDAQ:VRM) stock is falling on Tuesday after the used-car selling and buying e-commerce company announced plans to wind down its business.
A press release from Vroom reveals that it will discontinue its e-commerce operations while winding down its used vehicle dealership business. The company is doing so to conserve liquidity and maximize shareholder value.
As a result of this plan, the company intends to halt transactions on vroom.com. It will also sell its current inventory of used vehicles through wholesale channels. The company also plans to lay off employees tied to this business.
Vroom CEO Thomas Shortt said the following about the company’s plans:
“As we previously disclosed, we intended to raise additional capital to fund our operations and support the extension of our vehicle floorplan facility beyond its current expiration date of March 31, 2024. Despite significant efforts to do so, we ultimately were unable to raise the necessary capital in the current market.”
What’s Next for VRM Stock
Vroom notes that this will see the firm focus on United Auto Credit Corporation and CarStory. These are its automotive finance and its automotive retail analytics and digital services businesses.
Today’s news has more than 1.4 million shares of VRM stock changing hands. That’s closing in on the company’s daily average trading volume of about 2.7 million shares as investors sell the stock.
VRM stock is down 44.1% as of Tuesday morning.
Investors seeking out even more of the latest stock market stories are in the right place!
InvestorPlace is home to all of the hottest stock market news that traders need to know about on Tuesday! A few examples include why shares of Gamer Pakistan (NASDAQ:GPAK) and Rail Vision (NASDAQ:RVSN) stock are up and the biggest pre-market stock movers this morning. All of that is ready to go at the links below!
More Tuesday Stock Market News
- Why Is Gamer Pakistan (GPAK) Stock Up 38% Today?
- Why Is Rail Vision (RVSN) Stock Up 35% Today?
- Today’s Biggest Pre-Market Stock Movers: 10 Top Gainers and Losers on Tuesday
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On the date of publication, William White did not hold (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.
