British car retailer Cazoo faces administration, Sky News says (updated)

Cazoo

21/05/2024 09:25

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       May 21 (Reuters) - British online used car retailer
Cazoo Group  CZOO.N  will  appoint Teneo's administrators for
the viability of its business, Sky News reported on Tuesday.
    The firm launched in 2018 by entrepreneur Alex Chesterman
was once a poster child of online retail popularity during
lockdown. 
    The valuation of the London-based company, which was at $7
billion when it listed on New York Stock Exchange in 2021, has
dropped to around $30 million.
    A collapse into administration will allow Teneo to focus on
a sale, having already drawn interest from several potential
suitors including peer Motors.co.uk, the report added.
    Cazoo raised substantial doubt about its ability to continue
as a going concern last year, struggling with persistent
inventory problems amid a tough economic backdrop across its UK
and global markets.
    Both Cazoo and Teneo did not immediately respond to Reuters'
requests for comment.
    
    
    

 (Reporting by Anchal Rana in Bengaluru; Editing by Nivedita
Bhattacharjee and Rashmi Aich)
 ((Anchal.Rana@thomsonreuters.com; +91 9915609050;))