iMotors, founded in 1999 as one of the United States' first used vehicle e-tailers, announced on its Web site April 25 that it has ended operations "due to a lack of sufficient capital to continue to grow the business."

The company's Web site says customers who have made deposits will receive refunds. Customers also can call 888-466-8677 for refunds. For information on warranty administration and claims, the Web site says customers should call Fidelity Insurance at 800-327-5172.

According to the Web site, warranties will remain valid and be operated by Fidelity Insurance.

"We offer our gratitude to our customers for the opportunity to serve them, to our employees and their families for their passion, hard work, and tremendous support, and to our partners for their faith in our innovative model," a statement on the Web site reads.

The Web site said goodbye by wishing customers: "May you never get a flat tire or run out of fuel."

iMotors had three reconditioning centers and operated in 17 states. After customers specified the vehicle they wanted, iMotors would locate and recondition it, usually at a cost below Blue Book value. The vehicles came with a one week/700 mile money-back guarantee and a three month/3,000 mile warranty.

Meanwhile, Associated Press has reported that the closure means that iMotors.com's vehicle reconditioning centre in Ohio would shut down. The company had previously said that its West Chester operation eventually would employ 900.

AP said that iMotors leased the former AutoNation vehicle reconditioning centre just north of Cincinnati a year ago to serve as a beachhead for expansion on the East Coast. The 187,000-square-foot reconditioning centre, on 25 acres, initially employed about 100 technicians, AP added.

In March, Lloyd Ward, iMotors' chief executive officer, said the company was well-positioned to accelerate toward profitability. A month earlier Ward had said he thought the company would become one of the Fortune 500.

iMotors is at least the seventh major online car seller in four months to close or merge with another online business.