CarLotz, Inc. announced the closure of 11 dealership stores, or “hubs,” as part of a strategic review of the business, with cash preservation and future profitable growth as key determining factors. In addition, three locations with executed leases will not be opened. The Company will focus on growing the remaining hubs which it believes will produce, in combination, the higher future growth potential, higher profit potential, and the most attractive sourcing opportunities.

The Company is closing these 11 hubs for retail sales on June 21, 2022 with all hub closing activities to be completed by July 8, 2022. The closures will result in an estimated workforce reduction of 25% to 30%. The Company estimates the closures should reduce loss from operations by approximately $12 million to $13 million on an annualized basis.

This estimate assumes, among other things, that the Company will be unable to sub-lease any locations. The Company is evaluating opportunities to sub-lease or assign certain locations to interested parties. If the company is 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 $7.5 million to $8.5 million in occupancy costs per year.