Creditors of British online automotive business Carzam which went bust in June are unlikely to get any money back, according to a progress report from administrators.
In total, 48 creditors were owed £18.9 million ($23.1 million U.S.) when joint administrators, Adam Stephens and Greg Palfrey, of Evelyn Partners LLP published a statement of affairs in November. Co-founders Peter Waddell and John Bailey accounted for £12 million of this figure.
It now looks like they will get nothing back. The progress report shows assets of just £310,000, which is likely to all go to lawyers and administrators in fees. The list of creditors reveals that Waddell is personally owed £2 million and over £4 million through Peter Waddell Holdco Ltd and Bailey was owed £6.25 million.
Another progress report is legally obliged to be published in the next few months, unless everything is finalised before the due date, in which case the administrators will send their final report to creditors.
When Carzam announced it was being put into administration just 18 months after launching, Waddell blamed Cazoo for the change in investors attitude that meant no more funding was forthcoming. He said Carzam was unable to raise sufficient funds because the fall in Cazoo’s share price meant investors shied away from investing more in a similar business model.