BMO puts Trinity Auto Group into CCAA with $85 million owed

Trinity Auto Group, an Ontario automotive group, was placed under Companies’ Creditors Arrangement Act protection on August 7, 2026, on application by Bank of Montreal, owed approximately $85.2 million.

Trinity operates four franchised dealerships under the Stellantis, Mitsubishi, Nissan and Kia banners in Mississauga, Oakville and Stratford, together with used-car dealerships in Mississauga and London. Its other businesses include North Star Collision in Brampton, MetroFleet Car & Truck Rentals and towing operations, as well as several automotive and commercial real estate properties. The group traces its origins to an automotive service centre established by James Boban in 2013 and expanded quickly, entering used-car retailing in 2020, adding Oakville Mitsubishi in 2021, Stratford Kia and Stratford Nissan in 2022, a Brampton commercial plaza in 2023 and Mississauga Chrysler in 2024. The Mississauga Chrysler property was acquired in 2025. The debtors employ approximately 144 people, with another 18 independent contractors working in the towing operation.

That expansion ultimately strained the group's liquidity. BMO says the acquisition of Mississauga Chrysler and its related real estate added significant goodwill, mortgage and floorplan obligations while bringing substantial aged inventory into the group. Slower inventory turnover, floorplan interest, curtailment payments, inventory losses and fixed debt service followed, while self-funded vehicles tied up additional cash. A potential refinancing with TD Bank delayed BMO's review of the business before falling away by April 2026.

The severity of the inventory problem emerged over the following months. Steinberg Advisory Corp., retained by Trinity effective May 15, found 46 sold-in-violation vehicles representing approximately $3.17 million of floorplan financing at Mississauga Chrysler during June 17 fieldwork, as well as a stolen vehicle financed for approximately $35,700, 77 instances of re-chatteling and 18 instances of re-aging. BMO then retained Goldhar & Associates / Ethos Advisory on June 22 to conduct an independent review. Full dealership inventory counts conducted July 2 and 3 ultimately identified 264 vehicles that had been sold and delivered without repayment of the related BMO advances, representing approximately $13 million of gross SIV exposure. By July 16, the new-vehicle floorplan balance stood at approximately $43.5 million, about $8.5 million above its $35 million authorized limit.

BMO says management did not produce the comprehensive funded plan it requested to cure the SIV exposure, reduce inventory and stabilize liquidity. The lender also identified reporting defaults and an unauthorized subordinate $2.5 million charge registered against the group's 222 Advance Boulevard property. On July 27, BMO demanded repayment of approximately $81 million under the main credit agreement and approximately $4.2 million under separate financing for the Advance Boulevard property, and delivered notices of intention to enforce security. Two days later, Canada Revenue Agency served BMO with a requirement to pay based on approximately $214,000 of outstanding corporate income taxes owed by Oakville Mitsubishi, resulting in that company's bank account being frozen.

The CCAA proceeding is designed primarily to preserve dealership and franchise value while the businesses and assets are marketed. BMO was already aware of preliminary transaction activity involving Stratford Nissan, Stratford Kia and the Commercial Plaza before the filing, and intends to ask the Court at the August 17 comeback hearing to approve a formal sale process and the engagement of a real estate broker and sales agent. BMO is providing a DIP loan.

Goldhar / Ethos Advisory is the monitor, while Steinberg Advisory acted as Trinity's pre-filing financial advisor. Counsel is Chaitons for BMO, Gowling WLG for the monitor, and Dickinson Wright for Trinity.