Cazoo, the indebted online dealer group that stated this year it would relaunch as a car marketplace, has given notice that could be about to call in administrators.
In an update, Cazoo Group said it has filed with the High Court notices of intention to appoint administrators for its subsidiaries Cazoo Holdings, Cazoo Ltd which operates its marketplace business and Cazoo Properties which owns the majority of its leaseholds.
As a result, the subsidiaries are protected from creditors’ debt enforcement until administrators are appointed or for 10 days from today.
Its notice states that despite the notice of administration, its subsidiaries will continue to operate as normal.
Cazoo Group warns that if certain subsidiaries go into liquidation it would consider whether the entire group should go into administration or be wound up.
Last week it warned investors it could go bust if it failed to urgently raise capital.
It has sold most of its used car inventory, paid off stocking loans and cut staff numbers. It continues to negotiate the termination of leases, to try and sell customer service centres to third parties and dispose of unwanted assets.
Cazoo said it needed to raise more money to remain viable in the medium to long term.
It said then: “We have been pursuing strategic alternatives for the business or parts thereof, and while we have received interest for parts of the company’s business and assets, we have not received any offers that would, if consummated, enable the company to continue as a going concern in the medium- to long-term.”
In March the online car dealer Cazoo began to sell off its used car stock, transporters and customer care centres as it announced it will switch to a new business model as a car marketplace, competing with rivals such as Auto Trader, Motors and AA Cars.
It said it would look for a new chief executive – the business’s third in five years – as its CEO Paul Whitehead was leaving.
In 2021 one city fund manager said: “Cazoo is a bubble. Pure and simple. Possibly one of the biggest ever. And when it pops, a lot of people are going to feel it.”
Cazoo’s founder Alex Chesterman OBE left the company in December 2023.
