Licensed Insolvency Practitioners With National Coverage
Update 28th June 2024
The Cazoo brand has been bought by Motors, the online market place. However they have not bought the whole business.
Update 21st May 2024
Cazoo is expected to go into administration today with Teneo being the appointed advisors. The notice of intention to appoint moratorium expires tomorrow and there appears to not have been a rescue or sale.
Cazoo, the online second car dealer, has filed a notice of intention to appoint administrators. The company was at one point worth £6bn and employed 5000 people. Cazoo was floated on the US stock market and made its founder, Alex Chesterman, (on paper at least) one of the richest men in the UK.
The company boomed as it offered a platform for people to buy cars online and have them delivered to their home. The pandemic helped their growth and the company spent millions on advertising and sponsorship deals.
The company admitted last week that it was burning through £10m of cash a month and that it needed an urgent capital injection to survive.
Other factors contributing to its problems has been the rapid fall in second hand car values and the slower uptake of electric cars.
The company is not in administration right now but has filed an intention to appoint administrators. This means that the company has 10 days protection from its creditors, who may be threatening winding up petitions, whilst it tries to raise addition funds or sell the business.
Once that time period is up they may be able to extend for another 10 days, subject to approval by the court, but there has to be a very strong reason to do so.
Check the links on the right hand side for other questions regarding companies going into administration