By Dean Seal
Cazoo Group Ltd. said Thursday that following a strategic review, it is planning to wind down its business in mainland Europe so that it may focus on its core U.K. market.
The online car retailer said the proposed withdrawal is based on the level of further investment that would be required to scale its operations in Europe and the difficulties that doing so would create for conserving cash and achieving profitability.
The company said growth in the U.K. is strong, with retail unit sales there more than doubling in July and August, and an enormous total addressable market of eight million used-car transactions annually.
Cazoo said that it intends to start the wind-down of operations in Germany and Spain, and that it is currently consulting with employees in France and Italy, with plans to facilitate a structured closure for its customers, employees and suppliers.
The withdrawal is expected to translate to 100 million pounds ($115 million) in cash savings by the end of 2023, the company said.
Write to Dean Seal at dean.seal@wsj.com
