{"id":114248,"title":"Used car dealer Cazoo is on the brink of administration.","publisher":"Share Talk","author":"sharetalk","published":"2024-05-08T17:02:00+00:00","modified":"2024-05-08T17:03:20+00:00","canonical_url":"https://www.share-talk.com/used-car-dealer-cazoo-is-on-the-brink-of-administration/","markdown_url":"https://www.share-talk.com/used-car-dealer-cazoo-is-on-the-brink-of-administration.md","json_url":"https://www.share-talk.com/used-car-dealer-cazoo-is-on-the-brink-of-administration.json","category":"Automobiles, Parts & Engineering","categories":["Automobiles, Parts & Engineering","B2B","Blogs","Business & Support Services","Technology","Technology, Media & Telecoms"],"tags":["Alex Chesterman","American hedge fund","Cazoo","New York Stock Exchange","Viking Investors","Wall Street"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2024/02/cazoo-1.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"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](https://www.share-talk.com/used-car-dealer-cazoo-is-searching-for-a-financial-rescue-to-avoid-bankruptcy/) as it plunges deeper into a fiscal emergency.\n\nFounded 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.\n\nThis 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.\n\nFollowing 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.\n\nLast 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."}