Shift Technologies Inc SFT shares are plunging Monday morning after the company said it will file for Chapter 11 bankruptcy protection.
What Happened: Late Friday, Shift Technologies announced it intends to file a voluntary Chapter 11 petition in the U.S. Bankruptcy Court and implement an orderly wind down of its business.
The omnichannel used car retailer said it will use cash on hand and cash generated via inventory liquidation to provide liquidity to support the wind down and closure of its operations during the bankruptcy process.
Shift said it ceased operations at its two locations in California as of Friday.
"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," said Ayman Moussa, CEO of Shift Technologies.
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SFT Price Action: Shift shares were down 86.2% at 26 cents at the time of publication, according to Benzinga Pro.
Photo: 3844328 from Pixabay.
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