Canadian car dealer to cut hundreds of jobs and end used-vehicle sales

Apr 6 2023, 6:13 pm

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.

“The rising costs of holding inventory, amongst other headwinds, has made this specific business model no longer viable in the long-term,” wrote Canada Drives in its statement to BetaKit last month.

“During 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.”

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.

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