However, without a deal Cazoo warned its operating businesses would “need to file for administration or liquidation” and potentially wind up the company.

Cazoo’s founder Alex Chesterman became one of the richest people in Britain when the company floated, just three years after it was founded. Other backers to land a big payday included the publisher of the Daily Mail.

The business spent tens of millions of pounds a year on sport sponsorship deals and advertising in a bid to boost its profile.

It struck deals with at least nine football clubs, including those of Premier League stalwarts Everton and Aston Villa, as well as Spanish clubs Valencia and Real Sociedad, French giants Olympique de Marseille, and Germany’s SC Freiburg.

Cazoo also became a main sponsor of the St Leger Stakes horse race, the Hundred cricket tournament, the Rugby League World Cup, the World Snooker Tour and the PDC World Darts Championship.

At one point, the business employed more than 5,000 people across Britain and Europe, but it has since cut thousands of jobs in an effort to survive.

According to its last annual report filed in the US, Cazoo had just 1,500 employees in March 2023, the vast majority of them in Britain.

The potential administration comes amid a collapse in the value of used cars and fears that demand for electric vehicles has stalled.

Cazoo initially owned all its used car stock, which it offered to deliver to customers’ doors from hubs around the UK.

The business embarked on a rapid period of domestic and international expansion, buying up rivals and expanding across Europe.

However, in March it announced it would be changing its business model, selling off its stock of vehicles and changing into a purely online marketplace, similar to Autotrader.

At the time, Cazoo said it would be making “changes to our operations in line with a pure-play marketplace model, such as exiting fulfilment operations and reducing headcount”.

On Wednesday, Cazoo told the stock market that three of its UK subsidiaries had filed notices of intent to appoint administrators. These filings provide a moratorium on creditors launching claims against the company for 10 days, which can be used for a final attempt to salvage the business. 

The Telegraph reported in February that Cazoo had called in a team of restructuring experts to try and navigate its funding crisis and that the business was exploring a sale or a break-up.

A failure would mean Cazoo joins a growing list of UK companies that went public in the US via a so-called special purpose acquisition company (spac) at an eye-watering valuation, before falling into administration. 

Electric van maker Arrival and health company Babylon both went public in the US using spac deals and have since filed for bankruptcy.

Cazoo is being advised by Magic Circle law firm Freshfields, a legal filing showed.