Share price of Shift Technologies (NASDAQ:SFT) tumbles 7% as the company will be exiting its East Coast stores acquired as a result of its merger with CarLotz in order to focus on building omnichannel capabilities in its other locations and on the Company’s path to profitability.
The store leases, inventory, and related assets in Richmond, VA, Charlottesville, VA, and Tampa, FL, will be assumed by a local dealership group.
The stores in Midlothian, VA, Charlotte, NC, and Greensboro, NC will be closed, effective Thursday.
“After thoughtful consideration, we determined it was in the best interest of the company to exit the East Coast CarLotz presence. As we remain laser-focused on reaching profitability, we felt it was the right decision to focus on geographies where we have the most operating expertise, logistical and brand awareness leverage, and ability to scale. We look forward to leveraging the remaining CarLotz assets to build out our omnichannel presence to enable the customer to shop however they prefer,” commented CEO Jeff Clementz.