Houston-headquartered Vroom Inc. filed for Chapter 11 bankruptcy protection Thursday in the Southern District of Texas, citing about $305 million in liabilities but only $44 million in assets.
An automotive finance company and digital service platform for car retailers, Vroom selected Porter Hedges as its lead legal advisor and Latham & Watkins as special advisory counsel. The company also selected Stout Risius Ross as its financial advisor and Verita Global as claims and noticing agent.
In a public statement, Vroom officials said they plan to restructure the company’s debt and emerge from bankruptcy in early 2025.
“Since winding down our ecommerce used automotive dealer business, we have been focused on maximizing the value of our remaining assets for our stakeholders,” Vroom CEO Tom Shortt stated in a public filing. “We believe eliminating our unsecured Notes will significantly strengthen our balance sheet and allow us to emerge without any long-term debt at Vroom, Inc., while its subsidiary, UACC, will continue to be obligated to debt that is related to asset-backed securitizations and their trust preferred securities. Our team remains focused on executing our long-term strategic plan.”
The case has been assigned to Houston Bankruptcy Judge Christopher Lopez.
The case is In re Vroom, Inc., SDTX, No. 24-90571.