America's Car-Mart to Close 42 Dealerships Amid Financial Challenges

ROGERS, AR. - America's Car-Mart, a car dealership chain based in Northwest Arkansas, announced it will close 42 of its locations within the next week. This news comes from a recent report filed with the government.

CEO Doug Campbell shared details about the closures in a letter sent on April 7th to the company's investors, employees, and customers. He explained that while a new loan system is working better, securing a larger credit line needed to finance car sales has taken longer than expected. Campbell mentioned that this delay is partly due to general market conditions and issues beyond the company's control.

The company recently reported a significant loss of $76.71 million in its third financial quarter. Before these new closures, Car-Mart had already shut down 18 dealerships in that quarter, including five in Arkansas.

With the upcoming closures, Car-Mart will reduce its total number of dealerships from 154 to 94 by mid-April. Campbell noted that these 42 stores represent about 31% of their locations but serve only 18% of their customers. He stressed that the company is facing a short-term cash problem but believes its car loan portfolio is strong.

Campbell stated that the decision was difficult but necessary for the company's long-term health. The names of the specific closing locations have not been released. Customers whose dealerships are closing will have their accounts transferred to a nearby Car-Mart location or managed by the company's central team.