April 26, 2001
iMotors, an online user-car boutique, is closing down after two years of putting customers together with the user car of their dreams. A statement on the iMotors Web site said customers who have made deposits will receive prompt refunds and warranties will continue to be honored.
The company said it had insufficient capital to continue operations. It had cut its workforce by 30 percent last month and cut back its operations to focus on the West Coast. It had major operations in San Francisco and Sacramento.
iMotors found, purchased and reconditioned user cars to match customer requetsts. At one time it had 800 employees nationwide and seemed on the road to building an enduring franchise, but difficulties in turning a profit and investors' sudden loss of faith in Web businesses brought its joy ride to an end.
For more information regarding refunds, customers can call 888-iMOTORS. Customers with warranties in force will remain covered for the duration of the their policies, the company said. Further information on warranty administration and claims can be obtained from Fidelity Insurance at 800-327-5172.