Carzam Ltd (12209537): administration
- Status
- Administration ended
- Administration began
- 2022-06-01
- Administrators' firm
- Evelyn Partners
- Incorporated
- 2019-09-16
- Location
- London
- Industry
- 45112 Sale of used cars and light motor vehicles
Why it went into administration
- Cash flow / liquidity pressure
- Creditor pressure / legal action
- Regulatory change or action
From the administrators' statement
The Company sourced and reconditioned used cars for sale which could be delivered to a customer's home in as little as 24 hours. This was co-ordinated primarily through the Company's website which was launched in December 2020.
The directors of the Company first contacted Evelyn Partners LLP (then known as Smith & Williamson LLP) in April 2022 to discuss the Company's trading circumstances and initial discussions focused on the financial pressures the Company was facing. A meeting between the directors of the Company and Evelyn Partners LLP was held on 27 April 2022 to discuss the Company's financial affairs and Evelyn Partners LLP were advised by the directors of the Company that the Company was only able to meet its urgent financial obligations due to an injection of funds from certain shareholders. The directors informed Evelyn Partners LLP that the Company was facing significant pressure from creditors and that there was a strong possibility that a winding up petition may be issued against the Company.
In light of its deteriorating financial position, Evelyn Partners LLP advised the directors of the Company on the options available to the Company. After considering the financial position of the Company and the potential options available to it, the directors of the Company resolved that a turnaround of the Company's financial position was not viable, the Company was or was likely to become unable to pay its debts and that it would be in the best interest of the Company's creditors as a whole to place the Company into administration. The FCA provided their consent to placing the Company into administration on 30 May 2022.
Administrators' statement of proposals (2022-07-29) · Companies House register