Automotive markteplaces Motors and Cinch are alleged to be in the running to buy Cazoo, the digital retailer on the brink of administration.

Sky News reported that Motors is the leading contender to purchase Cazoo’s marketplace, including its brand and intellectual property assets.

Recovery advisor Teneo, acting on behalf of Cazoo, is also said to have struck a deal with Cinch’s owner Constellation Automotive to buy some of its leasehold properties, which could save dozens of Cazoo jobs. Other parties are rumored to have expressed interest in Cazoo’s remaining sites.

Most of Cazoo’s used car stock has already been sold at “higher-than-anticipated values” due to a shortage of used cars in the market, reported Sky News.

At the time of writing, Cazoo has nearly 17,000 cars for sale on its platform from a range of dealers. It’s also possible for car owners to sell their cars directly to dealers from the marketplace.

Jonathan Turpin, principal at the AIM Group, previously said: “My bet is that if Cazoo manages to gain a little traction, driven by the car-buying business, it will ultimately end up selling the business. You’re not going to have three businesses all playing at No. 2, No. 3 and No. 4.”

A spokesperson for Cazoo told CarDealerMagazine.co.uk: “Our new marketplace model, where consumers can both buy and sell cars, is revenue generating and performing ahead of expectations with interest from almost 100 car dealers including many household names wishing to trade on the Cazoo platform.

“Cazoo has successfully restructured and significantly reduced the cash burn of the group, resulting in a cash position in excess of £95m at April 30, 2024 compared to £113m at December 31, 2023, and the platform now has approximately 17,000 cars which is more than double the volume we previously supported and demonstrates the scalability of our technology and the strength of the team.

“We are making efforts to secure the next phase of our business and are grateful to our employees for their hard work and commitment.”

Like Cazoo, Cinch is an asset-heavy online retailer that sells its own stock. Its accounts for the 12 months to April 2023 show that its after-tax loss increased to £181 million ($229 million), despite revenue increasing by 24%.

 

 

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