(Reuters) -British online used-car retailer Cazoo Group will appoint administrators from advisory firm Teneo for the viability of its business, the company said in a regulatory filing on Tuesday.
Teneo’s administrators will continue to pursue sale transactions for remaining assets of the company, Cazoo said.
The company added that it was currently engaged in active discussions with several parties interested in its marketplace business.
It also said it would need to raise additional capital in the future in order to operate as a going concern.
The firm launched in 2018 by entrepreneur Alex Chesterman was once a poster child of online retail popularity during lockdown.
The valuation of the London-based company, which was at $7 billion when it listed on New York Stock Exchange in 2021, has dropped to around $30 million.
The New York Stock Exchange notified on Tuesday it would begin delisting proceedings of Cazoo stocks for failing to file its annual report on time.
A collapse into administration will allow Teneo to focus on a sale, having already drawn interest from several potential suitors including peer Motors.co.uk, the report added.
Cazoo raised substantial doubt about its ability to continue as a going concern last year, struggling with persistent inventory problems amid a tough economic backdrop across its UK and global markets.
(Reporting by Anchal Rana and Nathan Gomes in Bengaluru; Editing by Nivedita Bhattacharjee, Rashmi Aich and Tasim Zahid)
