Shift Technologies Plans To File For Chapter 11 Bankruptcy Protection; Stock Plunges 86%

(RTTNews) - Shift Technologies, Inc. (SFT) announced that it intends to file a voluntary petition for relief under Chapter 11 in the United States Bankruptcy Court to implement an orderly wind down of its business.

SFT closed Friday trading at $1.90, up $0.13 or 7.34%, on the Nasdaq. In after hours, the stock plunged 86.16% to $0.26.

The company said it will utilize cash on hand and cash generated by the liquidation of inventory through wholesale channels to provide necessary liquidity to support the wind down and closure of operations during bankruptcy.

Shift said its website and two locations in Oakland and Pomona have ceased operations.

In July, the company announced restructuring, reducing its headcount by approximately 34%, to cut cost structure.

Chief Executive Ayman Moussa 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."