Cazoo, the British online car retailer once worth well over £5bn, will clash with the government on Tuesday.
Sky News understands that Teneo's insolvency specialist will be formally appointed, just over a week after Mr Cazoo applied for temporary protection from creditors.
More than 700 people have already lost their jobs as a result of the Cazoo crisis, and administrators are expected to retain large numbers of staff to run the remaining marketplace models while they consider a sale. It is.
Auto industry officials say the administration's entry will allow Teneo to focus on a sale as its market model has attracted interest from many potential suitors.
On Monday, the group's wholesale arm was sold to another industry player, G3, and Constellation Automotive, owner of Kazoo rival Cinch, also acquired a number of assets from the stricken New York-listed company. .
One industry source said BMW, Motorpoint and Car Gurus are among the parties potentially interested in Cazoo's market including brands.
Privately owned used car platform Motors.co.uk also survives within the prospect field.
Cazoo was founded in 2018 by Alex Chesterman, a successful entrepreneur behind real estate portal Zoopla.
The company raised several rounds of funding at ever-higher valuations before debuting on the stock exchange in 2021, with investors valuing the company at $8 billion.
Kazoo spent tens of millions of pounds on sponsorship deals for soccer, snooker and darts in a bid to rapidly gain market share.
Assets sold in recent weeks include a fleet of vehicles that sold for higher-than-expected prices, reflecting the current shortage in the used car market.
The shift to a platform model has seen the company's inventory increase to more than 15,000 vehicles, making Kazoo now the only online car marketplace where consumers can buy and sell cars under a single brand, according to an industry source.
Mr. Chesterman left the business several months ago in the wake of a balance sheet restructuring that resulted in hundreds of millions of dollars in losses. Convert debt to equity.
The entry into management comes after a further wave of balance sheet and business restructuring.
Cazoo declined to comment on Tuesday, but said last week: “Our new marketplace model, where consumers can buy and sell cars, will connect around 100 car companies, including many celebrities, who want to do business with us.'' The Cazoo platform has a proven track record of gaining interest from dealers and generating higher-than-expected revenue. ”
The company added that it had “successfully restructured the group and significantly reduced its cash burn.”
Teneo declined to comment.
