Cazoo Group is set to be delisted from the New York Stock Exchange (NYSE) following a significant decline.
Administrators were appointed to the struggling online used car marketplace on Tuesday after it failed to secure new investment. This comes after reporting a £704 million loss in 2022, on top of a £544 million deficit in 2021.
The company attempted to restructure its $630 million (£495 million) debt last December, but these efforts were unsuccessful.
The shift to a marketplace model led to 728 job cuts between March 1 and May 17. At its peak, Cazoo employed 4,500 people, but now only 208 employees remain as joint administrators Matthew Mawhinney and David Soden from Teneo seek a buyer.
When Cazoo debuted on the NYSE in August 2021, it was valued at $7 billion (£5 billion). That valuation has plummeted to just $30 million (£23.6 million).
According to the Securities and Exchange Commission (SEC), Cazoo failed to file its 2023 accounts on time. The NYSE notified Cazoo on Tuesday (May 21) that it would start delisting its Class A ordinary shares, valued at $0.20 (16p) per share, and that trading would be suspended immediately.
After delisting, Cazoo expects its ordinary shares to trade in the OTC Pink Marketplace, a significantly less regulated market, which could further depress the share price, although there’s no guarantee they will trade there.
An extraordinary general meeting of shareholders is scheduled for June 6 to approve the winding up of Cazoo. If approved, liquidators will be appointed.
