By Dean Seal
Shares of Cazoo Group Ltd. gained 16% to 71 cents in early trading after the company said it intends to wind down operations in mainland Europe.
The online car retailer said it plans to focus on its core U.K. market instead, which saw retail unit sales more than double in July and August. Trying to scale its operations in Europe would create difficulties for conserving cash and achieving profitability, Cazoo said.
The company said it intends to start winding down operations in Germany and Spain and that it is currently consulting with employees in France and Italy.
The withdrawal is expected to translate to 100 million pounds ($115 million) in cash savings by the end of 2023.
Cazoo's shares touched a 52-week low of 45 cents in July and are down 88% this year.
Write to Dean Seal at firstname.lastname@example.org