British online used-car retailer Cazoo has filed for administration in the UK and appointed administrators from Teneo Financial Advisory to oversee the viability of its business.  

The company has experienced a significant drop in valuation from $7bn in 2021 to around $30m in 2024, according to a Reuters report. 

Joint administrators from Teneo, Matthew Mawhinney and David Soden will manage Cazoo’s affairs, business and property as part of the administration process.  

They will continue to pursue sale transactions for the remaining assets, including the marketplace business and customer collection centres. 

The company is in talks with several parties interested in its marketplace business and has received interest from potential suitors including

Cazoo also acknowledged the need to raise additional capital to continue operating.  

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The New York Stock Exchange has initiated delisting proceedings of its stocks due to the company’s failure to file its annual report on time.  

Throughout 2023 and 2024, Cazoo’s management and board have been exploring strategic options to address liquidity needs. 

In December 2023, the retailer completed restructuring transactions aimed at improving its capital structure and reducing debt.  

It subsequently engaged financial advisors to conserve cash and realign its business model, including a pivot to a marketplace model announced on 6 March 2024. 

By 1 May 2024, Cazoo had sold most of its inventory, repaid stocking loans and reduced its workforce.  

As of 21 May 2024, assets from vehicle repair centres and customer collection centres, as well as the wholesale division, have been sold, with several employees transferring to the buyers.  

These initiatives have helped reduce the company’s cash burn, resulting in a cash position of £98m as of 13 May 2024, compared to £113m at the end of 2023. 

In March 2023, Cazoo announced a strategic shift towards a pure-play automotive marketplace business model.