In the grip of serious financial difficulties, Cazoo, the British online car sales company, is seriously considering “revisiting” its strategy on its activities in continental Europe while refocusing on the British market.
Not really good news for the French Open, scheduled between September 22 and 25 at Le Golf National, of which Cazoo is none other than the main sponsor. Will Cazoo still be the title sponsor of the French Open at the end of September at Le Golf National? The question deserves to be asked.
In early June, Alex Chesterman, founder in 2018 of this British company specializing in the sale of second-hand cars online after having refurbished them, indeed sounded the alarm. He would thus have warned that the preservation of cash was becoming “the company’s priority, ahead of growth”, while providing for a plan of 750 layoffs.
As reported by Les Echos in an article dated August 4, 2022, Chesterman went even further earlier this week by announcing “a comprehensive strategic review of activities in continental Europe, in order to continue to reduce our consumption of cash.
He now intends to focus on the UK market and achieve full profitability there.
French Open, the situation
With a share price on Wall Street which has plummeted in one year from 10 to 1 dollar and a fundraising of 630 million euros at the start of the year, the company’s liquidities continue to decrease rapidly.
We are talking about a loss of 290 million euros in twelve months. All this barely a year after raising $1.6 billion on the New York Stock Exchange. Funds that have enabled it to develop its domestic market but also to establish itself in Germany, France, Spain and Italy.
The brand has also focused on sports sponsorship, becoming the main title sponsor of the Wales national rugby team, football clubs Aston Villa and Everton in England, Valencia and Real Sociedad in Spain, from Bologna in Italy and from Freiburg in Germany.
It is also jersey sponsor of the clubs of Lille and Marseille. So many ramifications that could disappear in the coming months. Golf is not left out since Cazoo, strongly involved in this sport, is the title sponsor of three tournaments on the DP World Tour calendar this season.
The Cazoo Classic, played from July 21 to 27 in Southport (England), with a prize pool of $1,750,000, the Cazoo Open, which is being played this week in Newport (Wales) on the Celtic Manor course (same endowment only for the Cazoo Classic), and above all the Cazoo Open de France scheduled from September 22 to 25 at the Golf National (3 million euros in endowment).
In the event of withdrawal, something which nevertheless seems unlikely for 2022 given the contractual commitments, it would be a new blow for the oldest golf tournament in continental Europe, canceled for two years due to the pandemic linked to Covid.
-19 and who had his Rolex Series status withdrawn in 2018 after the premature departure of his Chinese title sponsor, HNA. Reached by Les Echos, a spokesperson for the British brand said “it is too early to speculate.
The review process must take its course, any decisions on changes in our way of working will be taken afterwards. »