What's happened
UK-based online car retailer Cazoo, once valued at $8bn, has collapsed into administration, risking 200 jobs. The company, founded by Alex Chesterman, shifted to a marketplace model, leading to 728 job cuts. Administrators are seeking buyers for Cazoo's assets, including its online marketplace.
What's behind the headline?
What the papers say
According to The Guardian, administrators are in talks with potential buyers for Cazoo's marketplace business. The Independent reports on Cazoo's rapid growth, heavy losses, and previous restructuring efforts. Sky News highlights the interest from industry players like BMW and Motorpoint in acquiring Cazoo's marketplace.
How we got here
Cazoo, founded in 2018 by Alex Chesterman, gained popularity for its online car sales during the Covid pandemic. However, the company faced financial challenges, leading to a shift in its business model and significant job cuts. The move to a marketplace model aimed to attract buyers and secure a sale of the business.
Go deeper
- How did Cazoo's shift to a marketplace model impact its financial situation?
- What are potential outcomes for Cazoo's remaining assets and employees post-administration?
- Who are some of the key players interested in acquiring Cazoo's marketplace business?
Common question
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Cazoo is a British online car retailer based in London, England and founded in 2018 by Alex Chesterman.
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