Québec golf cart distributor placed into receivership after $62.2 million revenue collapse

Mobilicab Inc., a Québec-based distributor of new and used golf carts, was placed into receivership on October 9, 2026, on a joint application by Canadian Imperial Bank of Commerce (CIBC) and Business Development Bank of Canada (BDC), following a sharp deterioration in its financial performance and the cessation of its operations.

Mobilicab is a major Canadian distributor of new and used golf carts, operating establishments in Québec, Ontario, Alberta and British Columbia. The company was acquired in 2017 by Investissement Hatley Inc., which owns several properties used in its operations. Robert Charest, the principal shareholder and director of both companies, guaranteed certain obligations owed to CIBC and BDC. Although the two receivership applications were brought in separate judicial districts, the Court heard them together because of the companies' interconnected operations, financing arrangements and ownership.

The company's financial position deteriorated significantly beginning in 2024. Mobilicab recorded cumulative net losses of $62.2 million over the period covered by the report. Revenues declined 27% in 2025 and a further 43.5% during the first 8 months of 2026. The company also accumulated approximately $1 million in unpaid GST and QST remittances, while its principal secured lenders had begun enforcing their security.

By early October, Mobilicab no longer had sufficient liquidity to continue operating. Employees were notified on October 5 that operations would cease, with unpaid wages and accumulated vacation pay remaining outstanding. PwC advised that the company lacked the resources to continue in the ordinary course, and the Court accepted that it was insolvent. The Court also found Investissement Hatley insolvent, noting that its rental revenues depended principally on Mobilicab, which was its sole tenant at 3 properties.

The receivership involves Mobilicab's inventory of golf carts, spare parts and equipment, along with real estate assets in Québec, Alberta, British Columbia and Ontario. The related Hatley proceedings concern four properties, although two other properties associated with the group were excluded from the immediate proceedings because mortgage enforcement notices remained outstanding. The Court found that a national receiver was appropriate given the geographical spread of the assets, the overlapping security interests and the involvement of multiple secured creditors.

The proceedings also involve competing claims to certain inventory. DLL, a secured creditor, challenged the proposed administration charge, alleging that several golf carts subject to its security had been leased to golf clubs, returned to Mobilicab and subsequently sold without its authorization or notification. DLL also questioned the treatment of proceeds allegedly deposited into Mobilicab's CIBC accounts. The Court deferred determination of the dispute, directing the receiver to provide further information and leaving DLL's challenge to be addressed at a subsequent hearing.

The receiver’s proposed strategy focuses on preserving and realizing the companies' assets rather than resuming Mobilicab's operations. The receiver intends to identify and secure inventory and real estate, address unpaid property taxes and insurance, investigate ownership and security claims, and pursue sales designed to maximize recoveries for creditors. The Court emphasized that realization efforts should proceed cautiously, with the receiver first establishing the extent and value of the assets and the competing claims against them.

PwC is the receiver. Counsel includes McCarthy Tétrault for CIBC, Gowling WLG for BDC, Blakes for the receiver, Miller Thomson for DLL, and Guertin Avocats for Investissement Hatley.