ONLINE car retailer Cazoo formally collapsed into administration yesterday while its parent company is heading for liquidation.

The London-headquartered group, which is listed on the New York Stock Exchange, has appointed David Soden and Matthew Mawhinney of Teneo Financial Advisory as joint administrators.

Cazoo Ltd, Cazoo Holdings Limited and Cazoo Properties Limited have been placed into administration while parent company Cazoo Group is to be put into voluntary liquidation.

The confirmation comes after it became clear that a rescue deal for Cazoo would not be secured.

Cazoo, which was once worth more than £8bn, was founded in 2018 by Alex Chesterman.

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.

Joint administrator Matt 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."

Mawhinney added: "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."

(c) 2024 City A.M., source Newspaper