Car-Mart Forms Special Committee, Hires Houlihan Lokey for Strategic Review

America's Car-Mart is one of the largest buy-here, pay-here used car retailers in the United States, operating primarily in smaller cities across the South-Central states. The company sells vehicles and finances nearly all of its customers directly, carrying a principal receivables portfolio of roughly $1.47 billion as of January 31, 2026. With approximately 8.3 million shares outstanding and a market capitalization of approximately $102 million, the company is a small-cap operator carrying an institutional-scale debt load.

The past year has been one of compounding pressures. A restatement of historical financial statements was disclosed in July 2025 — related to omitted loan-modification disclosures — and management flagged material weaknesses in internal controls. The company also triggered a Nasdaq non-compliance notice that same month, though it regained compliance in August 2025 after filing its delayed annual report. In October 2025, it replaced a revolving credit facility with a $300 million senior secured term loan from Silver Point Finance, LLC, paying interest at SOFR plus 7.50% per annum and issuing warrants to Silver Point covering up to 937,487 shares at $22.63 each.

The fiscal third quarter ended January 31, 2026, produced a net loss of $76.7 million on total revenue of $286.8 million — a 12% year-over-year decline driven by a 22.1% drop in retail units sold. That quarter's loss included a $47 million non-cash charge to establish a full valuation allowance against deferred tax assets at its financing subsidiary. On April 7, 2026, the board approved the closure of 42 of its then-136 dealership locations, which CEO Doug Campbell described in a letter to shareholders as a response to "a near-term liquidity challenge" and the inability to secure a non-recourse revolving warehouse credit facility needed to restore origination capacity.