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Friday, 24 June 2022 14:33

CarLotz to Close 11 Hubs, Scraps Plans for 3 New Locations

Written by Auto Remarketing Staff

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CarLotz is closing 11 of its hubs and three planned locations will not open, the company said June 21.

The closure of these dealership stores was set to begin June 21, with the aim of completing the closures by July 8.

 

The resulting workforce reduction would be an estimated 25% to 30%, CarLotz said.

 

“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,” CarLotz CEO Lev Peker said in a release. “We greatly appreciate all our teammates have done for CarLotz and are committed to help support them through this transition.”

 

CarLotz is closing these hubs:

 

  • Atlanta-Lilburn, GA
  • Bakersfield, CA
  • Clearwater, FL
  • Highland Park, IL
  • Merritt Island, FL
  • Mobile, AL
  • Nashville–Madison, TN
  • Plano, TX
  • San Antonio, TX
  • Seattle–Lynnwood, WA
  • St. Louis–O’Fallon, IL

 

These represent half of the company's locations.

 

CarLotz estimates it would reduce loss from operations by roughly $12 million to $13 million annually by closing these hubs.

 

“This estimate assumes, among other things, that the company will be unable to sub-lease any locations,” CarLotz said. “The company is evaluating opportunities to sub-lease or assign certain locations to interested parties.

 

“If we are able to sub-lease or assign the leases associated with the 11 hubs and the three unopened locations, the company estimates an additional savings of...


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