Shift Technologies is an omnichannel retailer for buying and selling used cars. Credit: rafapress via Shutterstock.com.

Omnichannel used car retailer Shift Technologies has revealed its plan to file for protection under Chapter 11 of the US Bankruptcy Code in the United States Bankruptcy Court.

Based in San Francisco, the online retailer operates two locations in California, Oakland and Pomona.

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Shift said that the filing is intended to implement a systematic closure of its business. 

During the Chapter 11 process, the company will leverage cash on hand and cash generated by the liquidation of inventory through wholesale channels to support the wind-down and closing operations.

The retailer suspended operations at its two California locations. Its website, ww.shift.com, has also ceased operations.

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Keller Benvenutti Kim and AlixPartners acted as Shift’s legal counsel and financial advisor.

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Shift chief executive officer Ayman Moussa said: “We deeply value our employees, customers, partners and the communities in which we have operated. This was not the outcome we had expected or hoped to achieve.

“This decision follows months of trying to raise capital and restructure the balance sheet to allow the company to operate unencumbered in this challenging environment. Ultimately, the extensive efforts of our senior leadership team and advisors were not successful. We want to thank all our dedicated employees, customers and vendors who have supported us over the years.”

In July this year, Shift announced plans to reduce its headcount by approximately 34%. This reduction aims to restructure and better align people and responsibilities with its omnichannel sales strategy.

The e-commerce company said that approximately 60% of the headcount reductions are in operational roles.