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Gloucestershire Business News

Taxi for Cazoo?

Failed online used car dealer Cazoo could imminently have a new owner.

Motors.co.uk is tipped to be close to agreeing terms on acquisition of Cazoo's brand and marketplace operation and industry sources are indicating that the deal would be at a heavily discounted price as administrators search for a way to shift Cazoo's assets.

WIth the liquidation threat looming large, New York-listed Cazoo, which was set up in 2018, has now been in administration for three weeks. The prominent British online autoretailer was once valued at more than £5bn, but according to Sky News, Motors.co.uk, which is a privately owned used-car platform, is now in pole position to swoop in and take over.

Industry sources have indicated that the price for the deal could spell a significant discount on the investment Cazoo made with sports sponsorship deals to raise brand awareness since the 2018 launch.

Teneo is handling the administration and has already sold a number of Cazoo's operations, with hundreds of staff losing their roles. Cazoo's wholesale arm was sold to industry rival G3, while Constellation Automotive, which owns the key rival Cinch, has also harvested assets from the ailing brand.

Cazoo was the vision of entrepreneur Alex Chesterman, who made his mark in the business world initially with the creation of movie rental service LoveFilm and property portal Zoopla. At Cazoo's height, the firm entered the stock exchange with a valuation of more than £5bn and it went on to splash millions in sponsorship for football, snooker and darts. 

Mr Chesterman stepped down from the role of CEO in January and Paul Whitehead took over day-to-day duties as COO, but was unable to steady the Cazoo ship.

Motors.co.uk and Teneo have not issued comment on today's reports.

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