America’s Car-Mart Considers Sale as Inflation Hits Subprime Borrowers
America’s Car-Mart explores sale to stay afloat amid inflation hitting subprime borrowers.
In brief
America’s Car-Mart explores sale to stay afloat amid inflation hitting subprime borrowers. America’s Car-Mart is considering a sale through Chapter 11 or shareholder vote to address liquidity issues as inflation strains subprime borrowers. Originally reported by Pymnts.
America’s Car-Mart in sale talks
America’s Car-Mart and lenders are in talks for a sale through Chapter 11 or shareholder vote to continue operations.
Liquidity crisis deepens
The company faces tight liquidity, defaulted on $300 million term loan, and a reprieve ending Thursday.
Inflation strains customers
High inflation and interest rates make it difficult for subprime borrowers to pay what they owe.
Financial impact
Retail units dropped 81.9%, revenue fell 57.3%, inventory at $35.2 million.
The headline
America’s Car-Mart is considering a sale through Chapter 11 or shareholder vote to address liquidity issues as inflation strains subprime borrowers.
