More layoffs are likely following the “merger of equals” as the company will give up its headquarters in Richmond, VA, and whatever is left over will shack up with Shift in San Francisco. All of this to preserve cash and remain in business a while longer. Another three dealership stores that were scheduled to open will not be opened. In June, with the new guy in charge, CarLotz announced that it would lay off between 25% and 30% of its workforce and close half of its dealership stores. In May, CEO and chairman Michael Bor was thrown out and replaced by Lev Peker, the former CEO at. At the end of June, it had $124 million in cash and marketable securities left to burn. Charts like this – there are now many dozens of them out there from the SPAC and IPO mania – are indictment of the era:ĬarLotz, the used-vehicle consignment platform powered by AI or whatever, had a net loss of $34 million in Q2 on $76 million in sales.
Shift shares have collapsed by 92% from their high in June 2020 to $1.23. In its quarterly filing with the SEC, Shift warned that its “losses and negative cash flows from operations since inception, combined with its current cash and working capital position, raise substantial doubt about the Company’s ability to continue as a going concern.” So maybe at this rate, two or three quarters left. It ended the quarter with $88 million in cash and cash equivalent, down by nearly $100 million from six month earlier. So gross profit plunged, despite the increase in sales. Sales rose by 44%, but the cost of sales jumped by 53%. In the second quarter through June 30, Shift lost $52.2 million, on $223 million in revenues, selling used cars, which really takes some talent. San Francisco-based Shift Technologies, a SPAC creature that sells used cars online on its AI-powered platform or whatever, and that lost oodles of money, has entered into a definitive agreement to acquire an even more imploded SPAC creature, CarLotz, an online used-car consignment platform powered by AI or whatever that has lost oodles of money. The SPAC Implosion Saga just keeps on giving – this one in the used-car space. Charts of stocks like these – hundreds of them now – are an indictment of the mania in 2020 & 2021.
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