AutoCanada’s quest to return to financial stability has begun.

The Edmonton-based dealership group said Wednesday it has sold two of its Stellantis stores in Alberta – Ponoka Chrysler Dodge Jeep Ram in Ponoka and Airdrie Chrysler Dodge Jeep Ram on Airdrie – in a move that “aligns with the company’s commitment to improve profitability and reduce leverage.”

In a news release, executive chairman Paul Antony said the sale is “the first strategic move we’re making as part of AutoCanada’s realignment. We are taking actions that allow us to concentrate our resources and efforts to improve core operations, optimize our cost structure, strengthen profitability and reduce leverage.”

AutoCanada reported a net loss of $33.1 million for the quarter in its second quarter earnings call last month, when Antony said the company is “committed to making the necessary changes to stabilize the company and eventually put us back on the path to profitable growth,” including the divestiture of “underperforming assets.”

“We’ve really drawn kind of a line in the sand now that if a store is not meeting our expectations, it’s important for us to find something we can actually execute on,” he said during the earnings call. “Because just throwing resources at markets and areas that we don’t seem to have the ability to turn in a more permanent fashion… If they’re not meeting our expectations, we need to act differently.”

The Ponoka and Airdrie dealerships generated $86.5 million in sales during the 12-month period ending June 30, the company said.

AutoCanada said the deal was paid for in cash on closing, which will be used to reduce the company’s debt, but did not disclose the buyer or the sale price.

An online search of licensing records through the Alberta Motor Vehicle Industry Council shows Chrysler Dodge Jeep Ram dealerships at the addresses of the AutoCanada stores are now licensed to Calgary-based Kaizen Automotive Group, which operates dealerships in Alberta, Ontario and the U.S. states of California and Utah. The Ponoka location has been renamed Summit Chrysler Dodge Jeep Ram.

AutoCanada operates 83 franchised dealerships in eight Canadian provinces and the U.S. state of Illinois.