04:41 PM EDT, 09/24/2024 (MT Newswires) -- AutoCanada ( AOCIF ) , Tuesday said it is restructuring its RightRide operations, including the closure of several underperforming locations, as part of a larger strategic shift to optimize operations and cut debt .

AutoCanada ( AOCIF ) is closing seven unprofitable locations, and is shifting the remaining locations to an inventory-light business model and re-focused on the original strategy to provide credit solutions to credit challenged used light vehicle customers.

RightRide is a used-vehicle retailer which also offers financing. While the company has operations in Ontario, Manitoba, Saskatchewan and Alberta, the company did not say where the discontinued stores are located.

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

"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," said Executive Chairman Paul Antony.

The company's shares closed down $0.06 to $15.78 on the Toronto Stock Exchange.