AutoCanada Announces Restructuring of Its RightRide Business

AutoCanada Inc., a leader in Canadian automotive retail, announced the restructuring of its RightRide operations, including the closure of several underperforming locations within RightRide. This decision is part of a larger strategic shift to optimize operations and reduce leverage.

As part of this initiative, AutoCanada has closed seven unprofitable locations, while maintaining a select number of performing RightRide stores. The remaining locations have been shifted to an inventory-light business model and re-focused on the original strategy to provide credit solutions to credit challenged used light vehicle customers. This realignment is expected to strengthen the Company’s position in the market and return RightRide to profitability.

“To position our business for sustained profitability, we have made the difficult decision to close select underperforming RightRide stores,” said Paul Antony, Executive Chairman. “By focusing on our profitable locations and returning to our original strategy, we are confident that the operational efficiency and profitability of our remaining stores will improve.”

Financial highlights 

Discontinued RightRide operations generated $34.9 million in sales during the trailing 12-month period ending June 30, 2024.  Closure of these locations is expected to be immediately accretive to Adjusted EBITDA and earnings per share.