Vroom CFO to step down following restructuring

Vroom, the former high-flying online car retailer, has announced that CFO Bob Krakowiak is stepping down. He will be replaced by Agnieszka Zakowicz, the Senior VP and principal accounting officer. Mr. Krakowiak is not leaving the company as he has been nominated to the Board of Directors.

Vroom went public via a $468 million IPO in June 2020 and, at one point later that year, its market capitalization reached $8.2 billion. It currently has a market cap of $23 million.

The company relocated from Manhattan to Houston in 2022 in a bid to cut costs. Back in January, it announced it was winding down its e-commerce vehicles and closing its one physical dealership, Texas Direct Auto, in Stafford. It will concentrate on auto financing and its vehicle analytics company.

In early April, the company had announced it had completed the restructuring. However, its proforma financials of the ongoing business show that the company still has some serious difficulties.

For 2023, the ongoing business had revenues of $206 million and generated a loss from operations of $6 million. The company will still have net debt of $490 million and stockholders’ equity of $160 million. That equity figure includes $132 million of intangibles.

Mr. Krakowiak, who has been CFO since September 2021, will receive a severance equal to 12 month’s base salary. Conveniently, the company just bumped his salary from $565,000 to $650,000 in March 2024.

Ms. Zakowicz joined the company in January 2019 as Senior Director of Accounting Policy. Prior to that, she spent 18 years at PricewaterhouseCoopers.

SEC filing – 8-K Vroom CFO steps down

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