Online car retailer enters administration

The administration follows on from a planned restructuring of the Group which began at the end of last year, which saw the company transition its business to a new Marketplace model where consumers can buy and sell cars.

Since 6 March 2024, Cazoo has sold its entire vehicle inventory, repaid all associated stocking loans, and undertaken a number of sales processes for non-Marketplace assets including Cazoo’s vehicle repair centre in Thurleigh, Bedfordshire, and customer collection centres in Birmingham and Bristol.

As a result, 23 employees were transferred to Cinch on 17 May 2024. And, the business and assets of the Group’s wholesale division based in Bedford being sold to G3 Remarketing Limited. As a result, 28 employees were transferred to G3 Remarketing Limited on 20 May 2024.

Together with other initiatives, the transition reduced the cash burn of the group, resulting in a cash position in excess of £98m at 13th May 2024 compared to £113m at 31st December 2023

The transition to the Marketplace model however led to a reduction in the required employee headcount of the Group and unfortunately 728 redundancies were made following a full consultation process between 1 March and 17 May 2024.

The Marketplace model is now established, revenue generating and performing ahead of expectations with interest from almost one hundred car dealers including many household names wishing to trade on the Cazoo platform. Following the Group’s successful transition, to optimise returns to creditors, the administration filing marks the appropriate next step in the restructuring of the business.

Matt Mawhinney, Joint Administrator said: “Following Cazoo’s decision to pivot to a Marketplace model, the Group has been winding down its legacy operations and sold a substantial number of its businesses and assets. These sales have generated additional value for creditors, preserved a significant number of jobs, and ensured that leases have been transferred to new operators to mitigate losses to landlords.

“Following our appointment, we continue to progress discussions with a number of interested parties on the Marketplace business and remaining customer collections centres. The Marketplace model is performing ahead of expectations, with strong dealer sign up, and the administration appointment provides us with an opportunity to secure a sale of the business over the course of coming weeks.”