Peterborough-based online used-car dealership Carzam, which employs 150 people, goes into administration

An online car dealership headquartered in Peterborough that had set itself on the fast track to growth appears to be at a loss.

Carzam, based at Samson House, Morley Way, Woodston, where it operated its vehicle preparation center and claimed to employ around 150 people, went into administration.

Those hopes appear to have hit a stalemate with an announcement on the company’s website that directors had been named earlier this month.

It says Adam Stephens and Greg Palfrey of Smith & Williamson LLP were appointed joint directors of Carzam Limited on June 1, 2022.

The news is a far cry from the arrival of Carzam in Peterborough which was announced early last year with the release of figures showing the company had reached a turnover of £20.5m in just eight weeks after selling 1,600 used cars online.

The company said it was on track to achieve 20,000 vehicle sales and £250million in revenue in its first year of business and the number of employees is expected to increase .

And just five months ago, Carzam announced that it expects sales to reach £500m in 2022 and with over 40,000 vehicles sold.

But along the way, the company announced that it was seeking external funding to drive its growth. He announced an investment of £112million and the appointment of former Paddy Power chief executive Andy McCue as executive chairman.

But recently the company, set up by car investor John Bailey and Peter Waddell, who is also managing director of Big Motoring World, which has centers in Fengate, Werrington and a prep center in Morley Way, saw the departure of Mr. McCue in March. , its managing director Kirk O’Callaghan a month later, and then the departure of Mr Waddell.

The company’s collapse has sparked speculation that the used-car market bubble may have burst.

According to The Times, Mr Waddell said the company was unable to secure further financing after a decline in the share price of online car dealerships Cazoo and Carvana.

The co-administrators have been contacted for a response.