Canadian car dealer to cut hundreds of jobs and end used-vehicle sales
A Canadian car dealership is planning to cut hundreds of jobs and wrap up its used-vehicle sales after it filed for creditor protection last month.
Canada Drives, a Vancouver-based online car retailer, is set to lay off over 250 employees and liquidate all of its remaining vehicle inventories by early June, according to a report filed with the Supreme Court of BC.
On March 20, the company announced that it would undergo a restructuring of its business operations following its struggles to keep up with its expansion plans last year.
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ā Canada Drives (@CanadaDrives) March 27, 2023
āThe rising costs of holding inventory, amongst other headwinds, has made this specific business model no longer viable in the long-term,ā wrote Canada Drives in its statement to BetaKit last month.
āDuring this transition, Canada Drives intends to continue delivering its industry-leading car shopping experience to Canadians on all its existing inventory and honoring its commitments to both present and future customers.ā
PricewaterhouseCoopers Inc. (PWC), the court-appointed monitor for Canada Drives, revealed on Wednesday that the BC Supreme Court approved the dealership’s request to sell 133 cars to Alberta’s Go Auto for $2.9 million.
The online car dealer currently has over 700 employees and sells thousands of certified used vehicles.
This isn’t the only Canadian company that has announced layoffs in the past week.
A Vancouver tech company just announced that it’s set to lay off dozens of employees.
Last week, Electronic Arts announced job cuts that would impact hundreds of staff.