- Cazoo filed a notice of intention to appoint administrators last week
- Motors.co.uk reportedly looking to buy Cazoo market operation
Cazoo is urgently seeking buyers as it seeks to avoid a potential collapse after two deeply challenging years.
The used car marketplace last week lodged a notice of intention with the High Court to appoint administrators for some of its subsidiaries.
Sky News recently reported that online retailer Motors.co.uk was looking to acquire Cazoo’s market operationincluding its brand and intellectual property assets.
Needs direction: Used car market Cazoo is urgently seeking buyers as it seeks to avoid a potential collapse after two deeply challenging years.
He also claimed that Teneo, Cazoo’s turnaround advisor, had reached a deal with Constellation Automotive, the owner of Cinch, involving a small number of facilities and dozens of jobs.
Cazoo’s downfall marks a dramatic shift from the lockdown era, when the temporary closure of physical car dealerships led to a surge in online vehicle purchasing.
In 2021, it became one of the fastest unicorns in history (private companies worth at least $1 billion) and listed on the New York Stock Exchange at a valuation of £6 billion.
Cazoo was founded three years earlier by Alex Chesterman, founder of Zoopla LoveFilm, who modeled the company on Carvana, the American retailer known for storing cars in glass-tower vending machines.
However, while the company’s sales continued to rise after Covid-related restrictions ended, its huge losses ($704 million in 2022) forced the group to make major layoffs and close its operations in the European Union.
Chesterman exited the business last year after it exchanged $630 million of debt for $200 million in bonds and stocks. At the time, Cazoo was worth just $12 million.
Despite financial difficulties, Cazoo has spent millions sponsoring numerous sporting organisations, including the Welsh Rugby Union, the Professional Darts Corporation and the World Snooker Championship.
It used to sponsor the Hundred cricket tournament and many prominent European football teams, including Aston Villa, Bologna, Valencia and Olympique Marseille.
In March, Cazoo told investors it was selling its used cars and transitioning to a vehicle marketplace, with a view to competing with rivals such as AutoTrader and AA Cars.
In announcing the plan, the company said it would “leverage our key advantages: our brand, which is recognizable and trusted across the country, and our technology platform, which delivers a market-leading customer experience.”