Cazoo to Liquidate Following Shareholder Vote
Cazoo Group Ltd has officially announced its liquidation after the company's extraordinary general meeting on July 2, where shareholders voted for voluntary winding up. The decision marks the end of an era for the online car retailer, which has faced significant financial challenges in recent times.

Cazoo Group Ltd has officially announced its liquidation after the company's extraordinary general meeting on July 2, where shareholders voted for voluntary winding up. The decision marks the end of an era for the online car retailer, which has faced significant financial challenges in recent times.
During the extraordinary general meeting, shareholders approved resolutions to place the company in voluntary liquidation, appoint voluntary liquidators, and determine their remuneration. The Securities and Exchange Commission notice from Cazoo stated that the company would be placed in voluntary liquidation because it is unable to pay its debts.
The appointed voluntary liquidators, Neema Griffin and David Sodem, have already commenced the liquidation process in the Cayman Islands, where Cazoo Group Ltd is registered. This development signifies a critical shift in the management and operation of the company, as all directors have resigned and the liquidators now have full authority over the company's affairs.
The company’s official statement emphasized that the voluntary liquidators will act as agents of the company, thereby displacing the authority of the directors. "The voluntary liquidators will act as agents of the company and their authority to bind the company will displace the authority of the directors to do so. Accordingly, as of July 2, 2024, each of the directors of the company submitted letters of resignation and ceased to be directors," the statement read.
Under Cayman Islands law, voluntary liquidators are granted broad powers to manage the company's affairs, including the liquidation of remaining assets and addressing the company's outstanding obligations. The statement further elaborated that "Cayman Islands law gives the voluntary liquidators wide powers to deal with the affairs of the company (in some cases, once the liquidation is brought under the supervision of the court, with the sanction of the court). The voluntary liquidators will liquidate any remaining assets and satisfy or make reasonable provisions for the company’s remaining obligations. The company does not expect that there will be any remaining proceeds for shareholders."
Additionally, the notice mentioned the sale of the Cazoo brand to Motors on June 27, although specific details regarding the sale's value were not disclosed. This transaction marked the disposal of all realizable assets, leading to the winding down of the remaining operations.
Cazoo Group Ltd's financial difficulties have culminated in this voluntary liquidation process, highlighting the company's struggle to sustain its business model amidst mounting debts. The decision to liquidate follows a period of significant financial distress, during which the company could not meet its financial obligations. This liquidation process will be closely managed by the voluntary liquidators, who are tasked with ensuring that any remaining assets are appropriately liquidated and outstanding obligations are met to the extent possible.
For the shareholders, this announcement marks a challenging period as they face the reality of not receiving any remaining proceeds from the liquidation. The sale of the Cazoo brand and the subsequent liquidation of assets indicate that the company's financial state left little room for positive outcomes for the shareholders. The voluntary liquidators, Neema Griffin and David Sodem, will oversee the liquidation process, making decisions on the best course of action to manage and dispose of the company's remaining assets and obligations.
The liquidation of Cazoo Group Ltd underscores the volatile nature of the online car retail industry and the challenges that companies in this sector face. Despite its initial success and significant market presence, Cazoo could not navigate the financial hurdles that ultimately led to its liquidation. The outcome of this process will be closely monitored by industry stakeholders, as it may set a precedent for how similar companies might handle financial distress in the future.
As the liquidation process progresses, more details will likely emerge about the specific steps taken by the voluntary liquidators and the impact on the company's creditors and other stakeholders. The situation remains fluid, with the primary focus now on managing the liquidation efficiently and transparently.