Canada Drives will cut hundreds of jobs and end used vehicle sales

A Canadian car dealer plans to cut hundreds of jobs and wrap up its used-vehicle sales after filing for creditor protection last month.

Canada Drivesa Vancouver-based online car retailer, is expected to lay off more than 250 employees and liquidate all of its remaining vehicle inventors by early June, according to a report filed with the Supreme Court of British Columbia.

On March 20, the company announced that it would be restructuring its business operations following its struggled to keep up with expansion plans last year.

“Rising inventory holding costs, among other headwinds, have rendered this specific business model unsustainable in the long term,” wrote Canada Drives in its statement to BetaKit last month.

“During this transition, Canada Drives intends to continue to provide Canadians with its industry-leading car shopping experience on all of its existing inventory and to honor its commitments to current and future customers.

PricewaterhouseCoopers Inc. (PWC), the court-appointed monitor for Canada Drives, revealed on Wednesday that the Supreme Court of British Columbia has approved the concessionaire’s request for sell 133 cars to Alberta’s Go Auto for $2.9 million.

The online car dealership currently has over 700 employees and sells thousands of certified used vehicles.

It’s not the only Canadian company that announced layoffs last week.

A Vancouver tech company just announced that it was preparing to lay off dozens of employees.

Last week, Electronic Arts announces job cuts it would impact hundreds of employees.

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