By Ben Glickman
Cazoo Group said on Tuesday that it would voluntarily liquidate after completing a transition away from selling used-cars directly to buyers and entering administration in the U.K.
The company said in a regulatory filing that it had appointed two joint administrators linked to Teneo Financial Advisory, and was concurrently liquidating the parent company which is currently publicly traded.
Cazoo, founded in 2018, has been transitioning to a marketplace model, under which consumers buy and sell cars, from a model in which the company sold cars directly. The company has struggled for cash and last year restructured its debt in a deal with noteholders.
Joint Administrator Matt Mawhinney said the company was in discussions with interested parties on the remaining marketplace business and customer collection centers.
The administrators will oversee 124 employees linked to the company's marketplace, as well as 25 employees at Cazoo's customer collection centers. Twenty-five employees have been retained to help with the wind down.
Cazoo said it was hopeful that a sale of the business could allow employees to transfer to new employers.
The company said in the filing that the transition to its marketplace model had resulted in a headcount reduction of 728 employees. The company said the move had cut down its cash burn.
Write to Ben Glickman at ben.glickman@wsj.com
(END) Dow Jones Newswires
May 21, 2024 16:59 ET (20:59 GMT)
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