Vroom, the Houston-based company known for its online platform for buying and selling used vehicles, is set to wind down its operations due to a lack of additional capital. As a result, about 800 associated staffers will be let go.
In an effort to cut costs and streamline operations, Vroom will suspend transactions on its platform and sell its current vehicle inventory through wholesale channels. The company also plans to reduce its workforce, with approximately 800 employees expected to be affected.
Although this move will significantly impact Vroom's operations, the company will still continue to serve customers through its subsidiaries, United Auto Credit Corporation and CarStory. United Auto Credit Corporation specializes in car financing, while CarStory focuses on providing automotive digital services.
Vroom had originally intended to raise additional capital to extend its vehicle floorplan facility. However, Chief Executive Thomas Shortt confirmed that the company was unable to secure the necessary funds.
By winding down its online platform, Vroom hopes to improve liquidity and maximize stakeholder value through its remaining businesses.
