Canada Drives granted creditor protection and online operations abandoned during restructuring

Canada Drives, a used-vehicle retailer, has filed for creditor protection as it looks to restructure its business and move away from online sales due to rising inventory costs and falling used-vehicle prices. The Vancouver-based company reported significant losses in 2022, posting a loss of CAD 80.5m ($63.6m) on revenues of CAD 297.8m. The company’s CEO, Cody Green, said the online purchasing and trade-in experience “is no longer viable in the long-term”. Under the Companies’ Creditors Arrangement Act (CCAA), Canada Drives plans to restructure its business, closing the online sales segment and refocusing on the financing matching service it has provided for over a decade. The company also plans to liquidate its remaining vehicle inventory and cease used-vehicle sales.