Image source, Getty Images
- Author, Emma Haslett
- Role, Business reporter
Troubled online used car retailer Cazoo is close to entering administration, putting about 1,000 jobs at risk.
The move marks a fall from grace for a company that became one of the darlings of the pandemic, when car buyers were forced to make their purchases online.
The firm was launched in 2018 by Alex Chesterman, who also founded the property website Zoopla and LoveFilm, a predecessor of Netflix.
Its popularity during lockdown meant that when it listed its shares on the New York Stock Exchange in 2021 it was valued at $7bn (£5bn). That has now dropped to just $30m.
It came shortly after the company admitted it was struggling to raise money from investors, and said it would miss the deadline to file its annual accounts.
In March, Cazoo said it had sold off its remaining stock and switched to an online marketplace model, allowing car dealers to list their own stock on its platform. It also wound down its European business.
The company said it had explored “strategic alternatives” to…
