8:27 am, August 15, 2025
Failed online used car dealer Carzam still owes almost £20m to its creditors, whose hopes of recouping their money hang in the balance.
That is according to the latest liquidators report into the outfit’s finances, three years on from its dramatic collapse in June 2022.
The report, put together by joint liquidators Adam Stephens and Gregory Palfrey of S&W Partners LLP, reveals that an investigation is currently ongoing into vehicles transferred around the time of the company’s collapse.
The liquidators have contacted the DVLA, current vehicle owners and a related party to establish how the cars changed hands and whether value can be recovered for Carzam to pay off creditors.
According to the statement of receipts and payments, which was recently filed via Companies House, no firm conclusions have yet been reached and liquidators are still waiting on a number of responses.
The report says: ‘The investigation into the transfer of vehicles around the date of the administration continues.
‘During the period of this report we have corresponded with a number of third parties who appear to have taken receipt of vehicles associated with the company around the date of the administration, where we require greater clarity on the transfer of value associated with those vehicles.
‘We have contacted the DVLA to obtain ownership details for a sample of vehicles, contacted the current owners and then have worked backwards from here to identify the movement in ownership of those vehicles.
‘We have also written to a related party to request information in relation to their involvement with the vehicles.
‘This work is ongoing and we are awaiting a number of responses to help us reach further conclusions on this issue.’
The latest documents lay bare the current state of the Peterborough outfit, which was set up by Big Motoring World Founder Peter Waddell and former Cox Automotive president John Bailey, with the aim of challenging Cinch and Cazoo.
Car Dealer previously reported that the founders were owed more than £12m by the time the firm went into voluntary receivership and the latest statement reveals the full extent of the company’s debts.
The figures show that 173 unsecured creditors have lodged claims totalling £19.73m – up from the £18.99m declared in the directors’ original Statement of Affairs, published in October 2022.
Ordinary preferential creditors are owed £82,820, while secondary preferential claims stand at £43,314.
The liquidators say there are currently no funds available to pay any dividends, but that could change if the ongoing vehicle probe results in significant funds being recouped.
It remains unlikely that the retailer’s unsecured creditors will get any money back, as they can only receive payouts after full settlement of both tiers of preferential claims.
They are also relying on the current investigations to raise enough money, meaning the likelihood of any payouts appears to be incredibly slim.
In terms of assets and incomings, the latest documents show that the liquidation estate currently holds £109,497, with £2,304 generated in bank interest over the past year and £5,224 since liquidation began.
A VAT refund of £52,654 is also expected from HMRC, alongside any additional recoverable VAT.
Despite this, the liquidators say that the biggest boost to company coffers will come if the vehicle investigation uncovers assets that can be sold or clawed back.
Costs continue to mount
The report reveals that, since liquidation began, creditors have approved £153,430 in time costs for the joint liquidators – although these are yet to be paid.
That comes after time costs of £306,005 were incurred during the preceding administration – of which £124,495 has been paid.
Unpaid administration fees currently total £80,885, while a further £100,625 in additional costs from that period have not been authorised for payment.
Going forward, liquidators are looking to wrap up the ongoing vehicle investigation, reclaim VAT owed to the company and settle its final HMRC liabilities.
It will then pay out any dividends that funds allow, before officially liquidating the failed company.
Writing in the report, the liquidators say: ‘Our investigations have the potential to bring about significant realisations and therefore we have worked to action these over the last year and intend to continue this work until we are able to form a conclusion.’
You can read the full report here.
