Cazoo Hits the Administration Rock: A Rollercoaster of Jobs and Numbers
Last week, the once‑glamorous online car marketplace Cazoo found itself in administration. The business has been handed over to the savvy team at Teneo, who are on a mission to liquidate the remaining marketplace assets and keep the light on for future buyers.
Dead‑heads and Desk‑Jockeys
Serial entrepreneur Alex Chesterman has been no stranger to layoffs. Since March, the company has trimmed a whopping 728 arms from its workforce. The aim? A massive cost‑cutting overhaul to keep the engine from sputtering.
Teneo’s One‑Liner
Matt Mawhinney, joint administrator at Teneo, said in his trademark calm: “We’re on the lookout for partners who want a slice of the marketplace pie, and we’ve got a fair bit of inventory ready to be snapped up.” He added that the marketplace model is performing beyond what the old bosses expected, thanks to a flurry of dealer sign‑ups.
Numbers That’ll Make You Squint
- October 2023: Average retail GPU (gross profit per unit) stood at about £1,215.
- New forecast: £1,250 for the year, pushing to roughly £1,400 by December to counter seasonality and sticky interest rates.
- Adjusted EBITDA: Still pegged between £100 million and £120 million for 2023.
- Cash reserve: Expected to be around £100‑115 million, with £20‑30 million of self‑financed stock on hand.
What’s Next?
With Teneo leading the charge, Cazoo will likely come off the froth with a clean, transparent sale plan. The hope is that a buyer will swoop in, re‑inject capital, and turn the marketplace into a profitable, door‑opening operation again.
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