Cazoo has collapsed into administration – putting 200 jobs at risk. The UK-based used-car website once valued at £6 BILLION is now looking for a buyer for its remaining assets in a blow to UK drivers and motorists up and down the country.
Administrators at Teneo have been appointed to the business, which was founded by Alex Chesterman, the serial entrepreneur who also launched property site Zoopla and Netflix forerunner LoveFilm. Teneo is now on the hunt for a buyer for Cazoo’s remaining assets, including its online marketplace.
“Following our appointment, we continue to progress discussions with a number of interested parties on the marketplace business and remaining customer collections centres”, one of Teneo’s administrators, Matt Mawhinney, said in a statement. “The marketplace model is performing ahead of expectations, with strong dealer sign-up, and the administration appointment provides us with an opportunity to secure a sale of the business over the course of coming weeks.”
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In early 2023, founder Chesterman stepped down as chief executive to become the company’s chair, before resigning from the firm in December. The board said in a US filing that it was “in the best interests of the company and its stakeholders to commence the winding up of the company”. Matt Mawhinney, joint administrator at Teneo, said: “Following Cazoo’s decision to pivot to a marketplace model, the group has been winding down its legacy operations and sold a substantial number of its businesses and assets.
“These sales have generated additional value for creditors, preserved a significant number of jobs, and ensured that leases have been transferred to new operators to mitigate losses to landlords.” Chesterman left the company back in December, when a major restructure saw $630million worth of debt converted to just $200million.
The move puts more than 200 jobs at risk, according to reports.