Canada Drives Announces a Restructuring of Business Operations to Position the Company for Success
To implement the restructuring, Canada Drives filed for and was granted creditor protection under the Companies’ Creditors Arrangement Act, pursuant to an initial order (the "Initial Order") of the Supreme Court of British Columbia.
VANCOUVER, British Columbia, March 21, 2023--(BUSINESS WIRE)--Today, Canada Drives ("Canada Drives" or the "Company") announced a plan to restructure its business operations to better prepare the Company for success. As part of this plan, Canada Drives will narrow the Company’s focus to the two specific business lines that have consistently received praise from customers, and enable the Company to scale a less capital intensive and profitable business.
The first line of business the Company will focus on is providing the easiest way for Canadians to sell their vehicle via an instant online offer. Since 2021, more than 10,000 Canadians have sold their vehicle directly to Canada Drives and the Company intends to continue scaling this market leading solution by partnering with automotive dealerships across the country.
The second line of business the Company will focus on is helping Canadians get approved for automotive financing online, facilitated via a network of automotive dealerships throughout Canada. Canada Drives has been in the business of providing this service for Canadians and automotive dealers since 2010, and over that time, has served over one million Canadians.
Since 2020, Canadians have also been able to buy their car completely online through the Canada Drives platform. While the response from customers has been exceptional, the rising costs of holding inventory, amongst other headwinds, has made this specific business model no longer viable in the long-term. 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.
"Canada Drives expresses gratitude to its talented and hardworking team that has made it possible to provide an exceptional car shopping experience to thousands of Canadians," said Cody Green, Co-CEO of Canada Drives, "The Company also thanks every customer who has trusted them with their vehicle shopping and looks forward to continuing to serve them in the future."
Further information about Canada Drives’ restructuring and CCAA proceedings, including Court materials and reports prepared by the Monitor, can be found on PwC’s website.
About Canada Drives
Since 2010 Canada Drives has provided over one million Canadian car shoppers a simple and easy way to get approved for vehicle financing through their online approval process and their nationwide network of partner dealerships. Canada Drives also enables Canadians to get an instant online offer for their current vehicle, giving Canadians a safe and convenient alternative to selling their vehicle privately.
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