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Cazoo Collapses Into Administration, Putting 200 Jobs At Risk

Cazoo Delivery van

Cazoo, the online car dealer once valued at $8bn (£6.3bn), has collapsed into administration, placing 200 jobs in jeopardy. 

Administrators from Teneo have been appointed to oversee the business, which was founded by serial entrepreneur Alex Chesterman, who is known for creating Zoopla and LoveFilm.

Teneo is seeking buyers for Cazoo's remaining assets, including its online marketplace. 

Teneo administrator Matt Mawhinney said: “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.”

Cazoo's downfall comes just two years after being listed on the New York Stock Exchange in 2021. 

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The company had invested heavily in sponsorship deals with sports teams and events, including Aston Villa, Everton, horse racing, darts, snooker, and cricket, to enhance its brand visibility.

Since its launch in 2018, Cazoo has sold 160,000 vehicles. 

However, financial strains exacerbated by inflation and reduced consumer spending forced the company to exit its EU business, resulting in over 700 job cuts and £700m in losses in 2022. 

In early 2023, Alex Chesterman stepped down as CEO to become chair, later resigning entirely in December.

In March, Cazoo announced further restructuring, including selling a car repair center in Bedfordshire and customer collection centers in Birmingham and Bristol, to focus solely on its online platform. 

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This restructuring led to an additional 720 job losses. Despite repaying loans and downsizing, Cazoo lacked the capital needed for long-term sustainability. 

The board decided that winding up the company was in the best interests of its stakeholders.

The fate of Cazoo's remaining 200 employees hinges on whether Teneo can find a buyer willing to retain them. 

This includes 124 employees in the marketplace division in London and 25 at customer collection centers in Manchester and Northampton. 

An additional 59 employees from the head office and customer service centers in London and Southampton are assisting with the wind-down process.

Cazoo plans to hold an extraordinary meeting with shareholders on June 6 to approve the winding-up. 

Alex Chesterman has declined to comment on the situation.

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