America’s Car-Mart has received another extension from creditors to avoid default on its debt until September 24. It is the third extension from Silver Point Finance this month on the loan of $300 million secured in October 2025.
Driving the news: America’s Car-Mart, a large buy-here pay-here dealer based in Arkansas, was given a pair of extensions in June from Silver Point to avoid default.
An amendment to the terms expired Sept. 4, with America’s Car-Mart given extensions until Sept. 11 and 18 before receiving the latest movement of the deadline.
Reported progress: In the filing with the Securities and Exchange Commission Friday, the company reported progress on its search for alternative funding.
A special committee of the company’s board is seeking financing, recapitalization, restructuring, mergers and acquisitions, and other transactions.
Additionally, it reports that discussions remain active with third parties and lenders.
Financial struggles: In its first-quarter report for fiscal year 2027, filed this month, America’s Car-Mart reported revenue was down 57.3% to $145.8 million.
Year-over-year sales dropped 81.9% to 2,450 units.
The company did report an increase in third-party wholesale sales, up by nearly $11 million to $21 million.
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Lingering issues: America’s Car-Mart closed or consolidated 60 locations in the past year, dropping its store count to 94.
The dealer’s inventory decreased to $35.2 million from $54.1 million.
Its portfolio is down 21%.
The company’s debt was reduced by nearly 20% in the past year to $623.9 million as of July 31.
Looking ahead: While facing another deadline this week to secure financing, America’s Car-Mart CEO Doug Campbell warned in its first-quarter report that the company could not guarantee success.
“The Company cannot assure, however, that the review of strategic and financing alternatives will result in any transaction or other outcome favorable to the Company or its stockholders or that the Company will be able to secure additional financing on acceptable terms, or at all,” Campbell wrote in the disclosure.
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