A Chesterfield used auto parts website that had been expanding rapidly in recent years has shut down and laid off about 100 workers.
EverDrive, which allowed customers to order such things as used transmissions and was started in 2002 with the backing of a dozen or so local investors, abruptly shut down in late November.
Joey Woodfin, EverDrive’s founder and president, declined to comment when reached by email. His family has been in the auto salvage business for generations.
The company laid off about 20 workers several weeks ago, according to a source close to the company who spoke on condition of anonymity.
The closure brings to an abrupt end to what appeared to be an encouraging growth story in tough times. EverDrive expanded rapidly during the recession and was named one of the Greater Richmond Companies to Watch by the Venture Forum in 2005.
In 2008, Woodfin told BizSense that sales were rising five-fold. At the time, he reasoned, “We can save up to 50 percent of the new price, and it’s the same quality of the manufactured part.”
In March 2009, Woodfin told RBS in a Q&A that he was hiring an additional 15 people and was about to lock up deals with big car part retailers such as Pep Boys and AutoZone.
It’s unclear whether the business was ever consistently profitable. One source close to the company said investors might not have wanted to continue funding the company.
Aaron Kremer is the BizSense editor. Please send news tips to Editor (at) richmondbizsense.com.
So what about those of us who purchased their products!? I’m supposed to have a warranty on the product (extra cost) for three years! What happens if I need to use it? Will it be honored somewhere? Can I get my money back and skip the warranty? Who protects the consumer when these things happen? No wonder the economy is bad and no one wants to spend their money.