Administrators from Teneo Financial Advisory have been appointed by online car retailer Cazoo today, and have revealed that it has sold some assets to Cinch and G3 Remarketing.
The appointment of administrators closes a chapter in Cazoo’s brief history, as the indebted group abandoned its business model of selling its own used cars online to become an advertising marketplace for car dealers and consumers to sell and buy their cars.
Despite actions to restructure in 2023, including hundreds of redundancies and sell-offs of businesses Cazoo had acquired during its rapid growth phase, more than 700 other employees have now been made redundant following a consultation period which ended last Friday (17th).
The joint administrators David Soden and Matthew Mawhinney from Teneo are now hoping to secure the sale of the Cazoo Marketplace business, and said they are in discussions “with new and existing parties”.
A statement from Teneo revealed that Cazoo Group, which is listed on the New York Stock Exchange, is in the process of entering voluntary liquidation.
Its UK subsidiaries Cazoo, Cazoo Holdings and Cazoo Properties are all now in administration.
Prior to administration, Teneo supported Cazoo in the sale of several non-marketplace assets to reduce its cash burn, including its Bedford-based wholesale division to G3 Remarketing, saving 28 jobs, and its vehicle repair centre at Thurleigh plus customer collection centres in Birmingham and Bristol to Cinch’s parent Constellation Automotive Group, saving 23 jobs.
Mawhinney said: “Following Cazoo’s decision to pivot to a Marketplace model, the group has been winding down its legacy operations and sold a substantial number of its businesses and assets. These sales have generated additional value for creditors, preserved a significant number of jobs, and ensured that leases have been transferred to new operators to mitigate losses to landlords.
“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.”
Teneo said the Cazoo Marketplace business is revenue generating and performing ahead of expectations with interest from almost 100 car dealers “including many household names”.
The administrators have retained 59 staff to help wind down the business, based largely at its London headquarters and its contact centres in London and Southampton, plus 25 at Cazoo’s Northampton and Manchester collection centres while a buyer is sought for these, and 124 staff remain with the Cazoo Marketplace business.
If that were successfully sold, the administrators hope that many of these 124 staff would transfer to new employers.