carlOnline car retailer Cazoo has formally entered administration, while its parent company is set to undergo liquidation. The London-based group, listed on the New York Stock Exchange, has appointed David Soden and Matthew Mawhinney of Teneo Financial Advisory as joint administrators.
Cazoo Ltd, Cazoo Holdings Limited, and Cazoo Properties Limited are now in administration, and the parent company, Cazoo Group, will be placed into voluntary liquidation. This follows the failure to secure a rescue deal for Cazoo, confirmed on the morning of Tuesday, May 21.
Founded in 2018 by Alex Chesterman, Cazoo was once valued at over £5 billion. However, the company recently announced significant changes to its business model, job cuts, and the departure of its CEO in March. Between March 1 and May 17, more than 700 jobs were cut as part of a shift to a marketplace model.
A statement from Teneo highlighted that the new marketplace model is already generating revenue and performing better than expected, attracting interest from nearly one hundred car dealers, including many well-known names. The administration process is intended to optimize returns to creditors and facilitate the sale of the business.
Cazoo will continue to operate during the administration process, retaining around 200 employees. Joint administrator Matt Mawhinney emphasized that the shift to the marketplace model has involved winding down legacy operations, selling numerous businesses and assets, and preserving jobs while transferring leases to new operators to reduce losses for landlords.
Discussions with potential buyers for the marketplace business and remaining customer collection centres are ongoing, to secure a sale in the coming weeks. Mawhinney noted that the marketplace model is performing well, with strong dealer sign-ups, providing an opportunity to secure the future of the business.
