Canada Drives goals to utterly wind down its on-line used-vehicle gross sales phase, eliminating greater than 250 jobs and promoting all remaining automobile stock, by early June, in keeping with a report filed with the Supreme Courtroom of British Columbia.
The submitting from court-appointed monitor PricewaterhouseCoopers Inc. (PWC), made forward of a March 30 listening to, got here after Canada Drives was granted creditor safety March 20.
In searching for safety below the Firms’ Collectors Association Act (CCAA), the Vancouver-based firm stated it’s dealing with sustained losses within the ecommerce enterprise it launched in 2020. It plans to restructure, abandoning on-line gross sales to concentrate on its lead-generation phase, which the corporate stated has operated profitably since 2010.
Canada Drives goals to close down the used-vehicle gross sales portion of its enterprise no later than June 11, in keeping with the PWC submitting.
The liquidation of the corporate’s remaining stock, and deep staffing cuts are deliberate.
By Might 7, Canada Drives expects to have offered off its inventory of automobiles. It had 810 used automobiles remaining in stock as of March 24, down from about 1,250 per week earlier. Eight vehicles and 63 trailers the corporate used to ship automobiles to clients throughout Canada are additionally to be offered.
Canada Drives plans to cut back its workforce to 45 staff by June 11, in keeping with the PWC report. The corporate had 326 employees on the time of its preliminary CCAA submitting, and finally, layoffs are anticipated to whole greater than 300, the monitor’s submitting provides.
To carry onto employees deemed integral to the wind down course of, the net vendor sought and acquired court docket approval March 30 to implement a key worker retention plan. Below the plan, 17 staff will obtain a premium on their salaries for remaining with the corporate because it jettisons its ecommerce property.
A sale or contemporary funding in what’s left of Canada Drives will comply with as the following step within the restructuring course of.
Goeasy Ltd., which is the corporate’s largest unsecured creditor following a $40 million funding final June, is one attainable purchaser. The Mississauga, Ont.-based non-prime lender “has expressed curiosity within the ongoing enterprise,” in keeping with the monitor’s preliminary report back to the court docket.
Others are circling.
“Further events” have contacted each Canada Drives and PWC “expressing an curiosity” within the anticipated gross sales course of, the report provides.
Canada Drives will keep shielded from collectors till a minimum of Might 15. An amended court docket order staying proceedings in opposition to the corporate till that date was issued by the Supreme Courtroom of British Columbia following the March 30 listening to.