HUNDREDS of workers at struggling car sales firm Cazoo have been handed a potential lifeline, with a major motoring retailer reportedly lining up a takeover deal.
The popular platform, founded in 2018 and used by millions, collapsed into administration last month, leaving the fate of its employees and seven sites uncertain.
Created by Alex Chesterman, the man behind property website Zoopla, was previously valued at over £5 billion and employed 4,500 people at its peak.
It also landed several high-profile sports sponsorships, including Aston Villa and the England cricket team.
The firm also enjoyed a bounce during the pandemic, especially as a global microchip shortage sent prices rocketing.
Back in 2020, Mr Chesterman claimed that the company was “reinventing” the process of buying a used car.
However, it soon hit the financial rocks, recording a £550 million loss in 2021 despite a listing on the US stock market.
The next year, it lost sponsorships with Villa and Premier League rivals Everton before Mr Chesterton stepped down in December 2022.
After another difficult year, the firm called in the administrators this year and cut a whopping 720 jobs after the workforce had already been slashed by around a quarter the year before.
Now though, there may be light at the end of the tunnel as Sky News is reporting a major takeover deal is close to being agreed.
The report cites “industry sources” claiming that Motors.co.uk, which hosts listings for second-hand vehicles, is set to snap up Cazoo at a heavily reduced price.
The company’s wholesale arm has already been spun off, while rivals Cinch have acquired some other assets, but Motors is apparently set to step in and take on the rest of the business.
This could mean that hundreds of Cazoo’s workforce are retained if the deal goes through.
Motors.co.uk declined to comment when asked about the reported deal and the prospect of job cuts.
It comes as drivers brace for travel chaos with three major motorways closed today.