Vroom (VRM) Sees $31.5M Expense Related to Value Maximization Plan

As previously announced, on January 19, 2024, the Board of Directors (the “Board”) of Vroom (NASDAQ: VRM) approved a value maximization plan, pursuant to which the Company is discontinuing its ecommerce operations and winding down its used vehicle dealership business in order to preserve liquidity and enable the Company to maximize stakeholder value through its remaining businesses (the “Value Maximization Plan”). At the time of the Original Report, the Company was not able to make a good faith estimate of the costs it would incur in connection with the Value Maximization Plan. The Company now estimates it will incur approximately $31.5 million in one-time expenses in connection with the Plan. Included in this amount are approximately $15.0 million in costs attributable to contract and lease terminations and approximately $16.5 million of expenses the Company expects to incur relating to employee severance and benefits costs. Although the Company anticipates the ecommerce wind down to be substantially complete by March 31, 2024, additional wind-down costs may be incurred through the end of 2024.

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