The online car retailer Cazoo faces insolvency after its failure to obtain emergency funds. Share Talk reported in February that Cazoo was desperately seeking financial support as it plunges deeper into a fiscal emergency.
Founded by Alex Chesterman, the former head of Zoopla, the digital used car platform has submitted a notice of its intention to appoint administrators at the High Court.
This development signifies a sharp decline for the UK-based car dealer, which reached a valuation of over $8 billion (£6.4 billion) following its debut on the New York Stock Exchange in 2021.
Following a significant drop in share price, Cazoo underwent multiple restructurings and refinancings in an attempt to remain afloat, including a $630 million debt-for-equity swap finalized in December.
Last week, Cazoo disclosed its need for additional funding, noting the absence of external capital offers and a quarterly cash burn rate of about £30 million. The company’s leadership is currently considering various options, such as selling parts of the business.
