Off Lease Only, LLC company closure 750 employees laid off

Modern Dealer: Business Development with Colin Thomas BDC Colin™

Today, the 750 employees of Off Lease Only, LLC found themselves unemployed . After nearly 20 years in business, OLO in an internal memo stated 1. What is Off Lease Only announcing today? Is Off Lease Only going out of business? Yes, Off Lease Only ("OLO" or the "Company") has initiated an orderly wind down of its business. Over the coming weeks, we will be taking various steps to responsibly shut down our operations and liquidate our assets. We anticipate the wind down will take approximately 30 days to complete. 2. How did Off Lease Only end up in this situation? As most of you know, unprecedented changes to the automotive retail landscape over the last few years resulted in unanticipated challenges and competitive pressures for independent used vehicle dealers. We have been significantly impacted by the scarcity of inventory and inflated prices stemming from disruptions in the supply chain. Elevated pricing and rising interest rates have further deteriorated conditions in the automotive retail market, weakening consumer demand and affordability. Industry headwinds coupled with the decreased affordability of used cars has put us in an incredibly difficult position that we must start winding down our operations. Our leadership team has been working tirelessly to reduce our costs and expand our access to inventory, so that we could compete more effectively, and implement prudent cost management in the current environment. However, despite our efforts and achievements, we are unable to overcome these challenges. 3. Are these decisions related to business performance? Yes, we have been impacted by the unprecedented changes in the used automotive retail landscape over the last few years that resulted in significant challenges and competitive pressures for independent vehicle dealers. We have been significantly impacted by the scarcity of inventory and inflated prices stemming from disruptions in the supply chain. Elevated pricing and rising interest rates have further deteriorated conditions in the automotive retail market, weakening consumer demand and affordability. Industry headwinds coupled with the decreased affordability of used cars has put us in an incredibly difficult position that we must start winding down our operations. 4. Will there be layoffs as a result of this announcement? Unfortunately, as part of the wind down process, we have had to make the difficult but necessary decision to eliminate all of the positions in our Company. For all of our associates, September 7, 2023 is the last official day of work at the Company. However, for most associates September 6, 2023 is their last physical day with the Company. A small transition team will be asked to continue to support Off Lease Only wind down for a temporary period beyond September 7, 2023, but these arrangements will ultimately be eliminated as well at the conclusion of the wind down. 5. How does this announcement impact day-to-day operations at Off Lease Only? We have ceased sales operations and will be closed to the public effective immediately.