06:51 AM EDT, 09/30/2024 (MT Newswires) -- AutoCanada ( AOCIF ) , a Canadian automotive retailer, on Monday disclosed an amendment to its senior credit facility providing for enhanced financial flexibility to support its strategic restructuring plan over the next 12 months.

The amendment offers additional covenant headroom from Sept. 30, 2024, to Sept. 30, 2025, as the company focuses on cost reduction, portfolio optimization and deleveraging, AutoCanada ( AOCIF ) said.

In collaboration with Bain & Company, AutoCanada ( AOCIF ) will implement a series of operational improvements over the next year to streamline costs and enhance profitability. The company is also conducting a strategic review of its non-core and underperforming assets.

The review has already led to the sale of two non-core Stellantis dealerships in Alberta, the closure of seven unprofitable RightRide locations, and the repositioning of select remaining RightRide stores to an inventory-light model focused on providing credit solutions to customers with challenged credit.

The additional covenant headroom created by the amendment allows the company time to execute these initiatives without near-term financial constraints.

AutoCanada's ( AOCIF ) share price dropped 2.5% to $16.25 last Friday.