Tue. 21 Jun 2022, 4:18pm ET Benzinga Penny Stocks, Movers, Trading Ideas

CarLotz Inc (NASDAQ:LOTZ) shares are trading lower by 3.78% at $0.49 in Tuesday's after-hours session after the company announced the closure of 11 dealership stores as part of a strategic review of its business. In addition, three locations with executed leases will not be opened. 

CarLotz said cash preservation and future profitable growth were key determining factors in its decision to close the locations.

"While decisions that impact our teammates are not taken lightly and are not easy, we believe the hub closures are a necessary step to help improve the Company's financial performance," said Lev Peker, CEO of CarLotz.

The closures will result in an estimated workforce reduction of 25% to 30%. CarLotz expects the closures to reduce loss from operations by approximately $12 million to $13 million on an annualized basis. 

All 11 locations will be closed for retail sales on June 21. All closing activities are expected to be completed by July 8.

LOTZ Price Action: CarLotz has traded between $6.26 and 43 cents over a 52-week period.

Photo: randyrafaelcg from Pixabay.