Rogers, Arkansas – Northwest Arkansas-based America’s Car-Mart is set to close 42 of its dealerships within the next week, a move the company says is aimed at stabilizing operations amid broader financial and market challenges. The closures, disclosed in a filing with the U.S. Securities and Exchange Commission on April 7, will reduce the total number of Car-Mart locations from 154 in October 2025 to just 94 by mid-April, representing roughly 31% of the company’s store count.
Car-Mart CEO Doug Campbell outlined the closures in a letter to shareholders, employees, and customers, emphasizing that the decision, though difficult, is intended to strengthen the long-term health of the business. “We did not make this decision lightly and are taking these steps because they are the right thing to do for the long-term health of this business,” Campbell said. He added that while the stores closing account for nearly a third of Car-Mart’s locations, they serve only 18% of the company’s customers, limiting the immediate impact on clients.
The company has faced financial turbulence over the past year. In its third-quarter earnings released March 12, Car-Mart reported a loss of $76.71 million, or $9.25 per share. At that time, the company also closed 18 dealerships, including five in Arkansas. The current round of closures comes as Car-Mart works to adjust its financing and lending structure, replacing an inefficient lending facility with a $300 million term loan designed to produce “materially better credit outcomes.”
“At the same time, establishing the non-recourse revolving warehouse credit facility that would restore our origination capacity has taken longer than anticipated,” Campbell said. “This is not a singular Car-Mart decision — it requires alignment among multiple counterparties.” He also noted that broader market conditions and factors outside the company’s control have contributed to the uncertainty surrounding the resolution timeline.
The closures will also result in a reduction of support staff at affected locations, though the company has reassured customers that accounts from closing dealerships will be transferred to nearby stores or managed by a central team. Campbell described the current challenges as a “near-term liquidity challenge,” pointing to the company’s approximately $1.5 billion finance receivables portfolio as a substantial asset base that “substantially exceeds our total recourse obligations.”
While specific dealership locations slated for closure have not been released, the move reflects a larger strategy to focus resources on more efficient operations and strengthen financial stability. Campbell emphasized that the actions are aimed at protecting the value of Car-Mart’s assets for stakeholders while positioning the company for future growth.
The announcement underscores the ongoing pressures facing automotive retail chains, particularly those that provide financing alongside vehicle sales. Car-Mart’s efforts to restructure its lending operations and reduce overhead demonstrate the challenges of balancing liquidity, customer service, and operational efficiency in a fluctuating market.
For customers, the company is stressing continuity of service despite the closures. Those affected will continue to have access to Car-Mart’s products and services through nearby dealerships or through support from the central team, ensuring that account management and vehicle financing needs are maintained without interruption.
As Car-Mart moves forward, the closures and restructuring represent a significant turning point for the company. By consolidating locations and realigning financial operations, Car-Mart hopes to emerge more resilient and better positioned to serve its customer base across the remaining 94 dealerships nationwide.
The coming weeks will be critical for employees, customers, and the company itself as it navigates the transition and focuses on stabilizing operations while protecting its financial assets.
