Information acquired by News indicates that the current front-runner to acquire Cazoo’s marketplace and brand is Motors.co.uk, a privately held used-car marketplace.
According to industry insiders, the amount will probably represent a substantial reduction from the sum Cazoo invested in sports sponsorship agreements as part of its effort to increase brand recognition since its 2018 founding.
Following a debt restructure last year, Cazoo was unable to regain financial stability and entered administration last month.
Hundreds of employees have lost their employment as a result of Teneo, which is in charge of administration, selling several of Cazoo’s companies.
Constellation Automotive, the proprietor of Cazoo’s competitor, Cinch, also purchased some assets from the struggling New York-listed firm. G3 was the buyer of its wholesale division.
Alex Chesterman, the successful businessman behind the real estate portal Zoopla, established Cazoo.
Before making its stock market debut in 2021, it raised multiple funding tranches at ever-higher prices, with investors assigning it a $8 billion valuation.
To gain more market dominance, Cazoo spent tens of millions of pounds on sponsorship deals in football, snooker, and darts.
According to a recent industry source, Cazoo’s inventory has increased to over 15,000 cars as a result of its shift to a platform model.
