Cazoo preparing to enter administration as car retailer attempts to avoid collapse
Cazoo has signalled its intention to enter administration and has not ruled out winding up the company.
The London-headquartered car retailer, which is listed on the New York Stock Exchange, has filed notices of its intention to appoint administrators which buys it time to find a potential rescue deal.
Cazoo’s creditors cannot move against the company while the notices are active.
The move comes after Cazoo announced a major change to its business model, plans to cut jobs and the departure of its chief executive in March.
At the time the company said it would remain listed on the New York Stock Exchange “until at least March 20” but that it has no obligation to continue to be so after that date.
In a statement, Cazoo said it intended to transition to a marketplace business model, exit its fulfilment operations and reduce its headcount to focus on its e-commerce technology platform, proprietary data, brand, and digital marketing and commercial functions.
The firm has also announced that Paul Whitehead will step down as chief executive at the end of that month and will remain with the business until at least the middle of May as a strategic advisor.