Prospective bidders circle Cazoo as it nears collapse

Several businesses, including used car marketplaces MOTORS and Cinch are reportedly seeking to buy several assets from the company – with Sky News reporting that its marketplace operation, including intellectual property assets, is the target of MOTORS.  

Meanwhile, its recovery advisers Teneo have reportedly done a deal with Cinch and Marshall Motor Group parent company Constellation Automotive to take some of its leasehold properties and save jobs.  

A Cazoo spokesperson said: “This marks the latest step in the planned restructuring of Cazoo which began at the end of last year.  

“Our new marketplace model, where consumers can both buy and sell cars, is 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. 

“Cazoo has successfully restructured and significantly reduced the cash burn of the group, resulting in a cash position in excess of £95m at 30th April 2024 compared to £113m at 31st December 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.” 

Launched in 2018 by Zoopla and LoveFilm founder Alex Chesterman, Cazoo’s popularity spiked during lockdown – resulting in it being valued at $7bn (£5bn) when it listed its shares on the New York Stock Exchange in 2021.  

At the start of last year, Chesterman stepped down as chief executive – becoming Cazoo’s chairman – then left the business altogether in December. His replacement as chief executive – Paul Whitehead – stepped down in March.  

The news of its administration comes shortly after the company admitted it was struggling to raise money from its investors, with it announcing in March that it had sold off its remaining stock and switched to an online marketplace model.