Cazoo has gone into administration only three years after listing in New York at a valuation of $8 billion.
The used car business launched by the Zoopla entrepreneur Alex Chesterman sought protection from creditors earlier this month and warned shareholders that it might need to file for administration.
It has now appointed restructuring advisers at Teneo to handle the insolvency.
Chesterman founded the business after building Zoopla, the property portal, and LoveFilm, the mail-order DVD business that was ultimately acquired by Amazon.
Cazoo began as an online retailer and supplier of used cars but recently abandoned this business model to become an advertising marketplace similar to Auto Trader.
The car business was launched in 2018 and expanded rapidly by investing heavily in marketing, with sponsorship