By PYMNTS | October 20, 2026
Used car dealer and subprime lender America’s Car-Mart and its lenders are in talks for a sale that would allow the company to continue running, Bloomberg reported Tuesday (Oct. 20), citing unnamed sources.
The discussions center on a deal that would happen through a Chapter 11 process or a shareholder vote, though no decision has been made, according to the report.
America’s Car-Mart did not immediately reply to PYMNTS’ request for comment.
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The company faces tight liquidity and mounting debt pressures, defaulted on a $300 million term loan to repay its asset-backed line of credit and is operating under a reprieve from lenders that is set to end Thursday (Oct. 22), according to the report.
Like other lenders in the subprime auto finance market, America’s Car-Mart has been dealing with high inflation and interest rates that make it difficult for its customers to pay what they owe, the report said.
America’s Car-Mart has been exploring attempts to raise rescue financing and sell separate assets, as well as a sale of the company, per the report.
When reporting the company’s results for the quarter ended July 31, America’s Car-Mart President and CEO Doug Campbell said in a Sept. 9 press release: “Resolving our capital structure remains our first priority. The Special Committee, together with its advisors and management, continues to evaluate the range of financing and strategic alternatives available, including discussions with third parties. We do not intend to comment further on that process.”
During that quarter, America’s Car-Mart faced continuing capital restraints that limited its capacity to buy inventory and fund originations, Campbell said. That led to an 81.9% decline in retail units, a 57.3% decline in revenue and inventory that ended the quarter at $35.2 million, down from $112.5 million a year earlier, he said.
“This is a capital structure story, not a demand story,” Campbell said in the release. “Application volume was limited by the vehicles we had available to sell.”
In addition, credit performance was weaker due to the contraction of the portfolio, fuel and cost-of-living pressures on customers and the transition of a small portion of the book to centralized collections, Campbell said.