Cazoo Group Faces Administration as Financial Troubles Mount

The future of Cazoo, the online car dealer turned marketplace, hangs in the balance as the company faces the possibility of calling in administrators. This news comes after a series of warnings to investors about the company’s financial stability and the need to urgently raise capital.

In a recent update, Cazoo Group announced that it has filed notices of intention to appoint administrators for its subsidiaries, including Cazoo Holdings, Cazoo Ltd, and Cazoo Properties. While the subsidiaries are currently protected from creditors’ debt enforcement, the company is at a critical juncture as it navigates the possibility of administration or liquidation.

Despite the looming threat of administration, Cazoo Group reassured that its subsidiaries will continue to operate as normal. The company has already taken steps to sell off its used car inventory, pay off loans, and reduce staff numbers in an effort to stay afloat.

The decision to shift to a new business model as a car marketplace earlier this year was a bold move by Cazoo, but it seems that the transition has not been without its challenges. With the departure of CEO Paul Whitehead and the departure of founder Alex Chesterman OBE, the company is facing a period of uncertainty and change.

As the industry watches closely to see how Cazoo will navigate this turbulent time, one thing is clear – the future of the once-promising online car dealer turned marketplace is now hanging in the balance. Stay tuned for updates on this developing story.