Cazoo issues business update, needs to raise more money

By automotive-mag.com 3 Min Read

Cazoo has issued a statement to the New York Stock Exchange (NYSE) giving an update on its current trading position.

The group announced last month it was pulling out of used car sales and moving into the marketplace model to compete with companies like Motors and Auto Trader. The group now has 14,000 cars listed on its website.

It has sold most of its used car inventory, paid off stocking loans and cut staff numbers. It continues to negotiate the termination of leases, to try and sell customer service centres to third parties and dispose of unwanted assets.

Cazoo said it needed to raise more money to remain viable in the medium to long term. It is also late in filing its accounts.

“Notwithstanding our pivot to a marketplace model and the various asset disposals, we still need to raise additional capital in the future to continue as a going concern in the medium- to long-term.

“We currently have no offers to provide outside capital, or otherwise, to address this need. We have been pursuing strategic alternatives for the business or parts thereof, and while we have received interest for parts of the company’s business and assets, we have not received any offers that would, if consummated, enable the company to continue as a going concern in the medium- to long-term.

“Accordingly, absent an agreement with respect to a significant strategic alternative or outside capital, it is reasonably likely that certain of the company’s operating subsidiaries would need to file for administration or liquidation and we would then consider the best options for the company at that time. The options may include filing for administration or winding up the company.”

 

 

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