Shift Technologies, a consumer-centric omnichannel retailer for buying and selling used cars, and its subsidiaries intend to file a voluntary petition for relief under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court to implement an orderly wind down of its business.
To facilitate the process, the company will utilize cash on hand and cash generated by the liquidation of inventory through wholesale channels to provide the necessary liquidity to support the wind down and closure of operations during the Chapter 11 process.
The company’s two locations in Oakland, CA, and Pomona, CA, and the company’s website have ceased operations as of the time of this press release.
“We deeply value our employees, customers, partners, and the communities in which we have operated,” Ayman Moussa, CEO of Shift, said. “This was not the outcome we had expected or hoped to achieve. 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. We want to thank all our dedicated employees, customers and vendors who have supported us over the years.”
Keller Benvenutti Kim is serving as legal counsel and AlixPartners is serving as financial advisor.
