7:03 am, May 12, 2024
Motors has been linked with a deal to buy failed online car retailer Cazoo with the firm teetering on the brink of collapse.
Car Dealer reported earlier this week that Cazoo Group had alerted the High Court of its intention to appoint administrators at three of its subsidiaries – namely Cazoo Holdings Ltd, Cazoo Ltd, and Cazoo Properties Ltd.
Sky News is now reporting that the news could spark a fire sale of Cazoo’s remaining assets with Motors said to be a ‘leading contender’ to acquire Cazoo’s marketplace operation, including its brand and intellectual property assets.
It is not clear at this stage how many other parties are interesting in taking on the stricken operation and how much Cazoo’s remaining assets, could be worth.
Elsewhere the report also says that Cazoo’s recovery advisers, Teneo, have done a deal with Constellation Automotive, owner of the firm’s previous rival, Cinch.
The group has reportedly agreed to take over a handful of remaining Cazoo sites, in a deal which save a number of jobs.
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.
In response to the latest development, a spokesperson for Cazoo said: ‘Our new marketplace model, where consumers can both buy and sell cars, is revenue generating and performing ahead of expectations with interest from almost 100 car dealers including many household names wishing to trade on the Cazoo platform.
‘Cazoo has successfully restructured and significantly reduced the cash burn of the group, resulting in a cash position in excess of £95m at April 30, 2024 compared to £113m at December 31, 2023, and the platform now has approximately 17,000 cars which is more than double the volume we previously supported and demonstrates the scalability of our technology and the strength of the team.
‘We are making efforts to secure the next phase of our business and are grateful to our employees for their hard work and commitment.’
Motors has not commented on the recent speculation.
Car Dealer reported as far back as last December that Cazoo had said it faced going under.
Things then stepped up a gear last week when bosses admitted the firm could be forced to file for administration if outside investment could not be secured.
Last week’s announcement also included news that Cazoo had missed the deadline for reporting its 2023 accounts – because of pressures on management – and that CFO Paul Woolf had left the business.
His departure followed that of Cazoo founder Alex Chesterman and former CEO Paul Whitehead, who both left the company in the past few months.
You can learn more about the turbulent history of Cazoo here.
Alternatively, you can watch our special documentary all about the firm’s rise and fall below:
