Cazoo, the troubled U.K.-based digital car dealer that recently pivoted to an automotive marketplace, says it could enter administration or be wound up.

In a May 1 filing to the U.S. SEC, Cazoo said that it might have to take this action due to its inability to secure additional funding.

“The options may include filing for administration or winding up the company”

According to the company statement, “We still need to raise additional capital in the future in order 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.”

Cazoo also admitted missing the deadline for reporting its 2023 accounts due to management changes, liquidity concerns and its recent pivot to a marketplace model.

It doesn’t expect to meet the 15-day extension granted by the SEC to file its 20-F form and acknowledges that failure to produce the financial statement could put it in non-compliance with the of requirements of the New York stock exchange, where its shares are listed.

“… at this time, the company cannot estimate when it will be able to file the 2023 Form 20-F, if at all,” the statement said.

The company said it had cash and cash equivalents of £95 million ($76 million U.S.) as of April 30 and expected to spend £6-£7 million of cash per quarter after completing its transition to a marketplace model in July.

In its most recent financial report, published on Dec. 31, 2023, Cazoo said it was burning through £25-£30 million per quarter.

Gareth Purnell replaces Paul Woolf as CFO

The company also announced the retirement of CFO Paul Woolf, on Apr. 30. He has been replaced by Gareth Purnell. This follows the departure of CEO Paul Whitehead, who left at the end of March, and founder and former CEO Alex Chesterman, who stepped back in December last year.

Cazoo launched its marketplace last month, with 14,000 cars for sale “from a number of new partners.” Consumers can also sell their cars to third parties via the Cazoo website.

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