8:31 am, June 10, 2024
Motors is closing in on a deal to buy Cazoo as administrators look to offload the failed used car dealer’s assets.
Car Dealer reported last month that the digital marketplace was interested in acquiring Cazoo and Sky News is now saying that a deal is close.
The sale would see Motors, formerly Motors.co.uk, acquire Cazoo’s brand and marketplace operation for a bargain basement price.
Although the fee has not been revealed, sources close to negotiations say any deal would be heavily discounted as part of a wider fire sale of Cazoo’s assets.
Car Dealer has approached Motors for a comment on the reports but has not received a response.
The deal would mark a significant landmark for Cazoo, which has already seen several other arms sold off since administrator Teneo was appointed last month.
The firm’s Bedford-based wholesale operation was recently bought by G3, with its 28 employees transferring across, as exclusively reported by Car Dealer.
G3 told Car Dealer that the 14-acre site would form a new auction centre as part of its ongoing UK expansion plan.
Elsewhere, Cinch owner Constellation Automotive has also reportedly agreed to take over a handful of remaining Cazoo sites, in a deal that would save a number of jobs.
Despite that, Sky is reporting that hundreds of Cazoo employees have lost their jobs as a result of the company falling into administration.
It comes after the company pulled out of used car sales and relaunched as an advertising marketplace with the aim of rivalling Auto Trader and, ironically, Motors.
Teneo says that the firm’s transition to a marketplace model saw 728 redundancies being made after a consultation process that was carried out between March 1 and May 17.
The firm was also delisted from the New York Stock Exchange later on in May, after failing to find fresh investment following losses of £704m in 2022 and £544m in 2021.
Teneo could not be reached for comment regarding the Motors deal.
Alex Chesterman, who founded Cazoo in 2018 and launched it the following year, stood down as CEO in January 2023, leaving it completely in December.
When the BBC asked him for a comment on Cazoo’s plunge into administration, he said he hadn’t had any involvement with it for more than 18 months and wouldn’t give any further comment.
The controversial businessman recently came in for criticism from Swansway boss Peter Smyth, who said that the original plans for Cazoo were a ‘work of complete fiction’.
