Ex-SPAC Car Seller Shift to File for Bankruptcy

Important Key Takeaways:-

• Online used car seller Shift Technologies Inc. has announced its decision to file for bankruptcy and cease its operations.

• The San Francisco-based company will use the proceeds from liquidating its inventory to fund the wind-down process.

• Both of Shift’s physical locations in California and its website have already ceased operations.

• The CEO, Ayman Moussa, expressed disappointment with the outcome, stating that the decision followed months of attempting to secure capital and restructure the company’s financial position.

• Shift initially went public by merging with a blank-check company, Insurance Acquisition Corp., in 2020, but it has now become another example of ex-SPACs facing difficulties as the popularity of blank-check companies declines.