Carzam has gone into administration just 18 months after launch, with co-founder Peter Waddell blaming the collapse on a wider lack of faith in the future of online vehicle sales.
Waddell formed the Peterborough-based company with Cox Automotive International President John Bailey in November 2020, investing £50m of their own money and promising a 24-hour nationwide delivery service.
However, outside funding has been difficult to secure as investors have become increasingly cautious about the future of online vehicle retailers. This has been reflected in falling share prices for the likes of Carmax, Carvana and Cazoo, plus the news that Dennis Publishing’s Autovia division will no longer operate its online car retail platform, Buyacar.
Speaking to The Times, Waddell said, “Business is all about taking a chance. We tried. It didn’t work. We didn’t get the funding.”
Adam Stephens and Greg Palfrey of Smith & Williamson have been appointed joint administrators.
