Cazoo seeks cash lifeline
12 February 2024
Cazoo is facing a funding crisis and must persuade shareholders to agree to an urgent cash injection – and is understood to be preparing contingency measures including new investors, a sale or beak-up of the company, and asset sales.
If fresh funds can’t be found, it will be forced to consider administration. The Telegraph reports a team of restructuring and insolvency experts is being called in to navigate the crisis.
In December, Cazoo revealed it could run out of capital by the middle of the year. It said it was burning through £30m to £40m every quarter and lending agreements obliged it to maintain a cash cushion of £50m.
A Cazoo spokesman told The Telegraph: “Cazoo does not comment on market rumours but…as we have made clear in our SEC filings, we have commenced an evaluation of potential partnerships, synergies, mergers, acquisitions, joint ventures and sales in the light of our improved capital structure.”
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