Thursday, June 20, 2024

Huge car company lays off 4,300 people – will voluntarily go bankrupt

They were once worth $7 billion. Now the giant car dealer Cazoo is flirting with a voluntary bankruptcy petition.

It wasn't long ago that online car retailer Cazoo, founded in England, was worth upwards of $7 billion.

But it's not like that anymore. On the contrary, a curator has now been appointed who sees it as the best option for the company to file a voluntary bankruptcy petition.

The BBC writes that.

Cazoo became extremely popular during the corona pandemic, when distance requirements and masks forced people around to do more of their shopping – perhaps more than usual – online.

But since corona, it has been a struggle to get the business going. Among other things, Cazoo has not been able to obtain the necessary capital from new and existing investors.

In March, the business tried to save itself by changing from a platform that sells cars itself to being an online platform for private car dealers.

But even that, even if it meant firing 728 employees, has not created the success that has been and is needed. Now the appointed Teneo writes that the best solution will be to seek voluntary bankruptcy.

In this way, they will try to find a buyer for the part of the business that is still seen as sustainable. The 208 employees who are still on the payroll will still be paid wages in the coming period. But their future is also uncertain.

When Cazoo was most valuable, in addition to England, the platform was available in Spain, Germany and Portugal. With a market value of almost 7 billion dollars, corresponding to 48 billion Danish kroner. Enough to have 4,500 employees.

The British car dealer site is not the only one in the car industry to be on the brink of bankruptcy. The same is the car brand Fisker Inc.

It is expected that the brand headed by Danish Henrik Fisker will file for bankruptcy protection within a few days. In fact, it has already happened. Read more about it here .

Read more exciting news from and about the world of cars right here!

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