By: MarkJ - 23 July, 2009 (11:01 AM) - Score: 6369 - Fixed Line Broadband
UK ISP Breathe Networks Group, which has this week been in the news following a slew of largely ZetNet related email problems and a sudden broadband platform migration (here), confirms to ISPreview that a management buyout has indeed taken place. This may at least be partly responsible for the recent disruption to the provider’s services.
It's understood that the situation arose after ZetNet, which is one of two ISPs operated by Breathe (the other being Fast4), was forced to enter Administration on July 16th. ZetNet is known to have been going through a difficult management restructure towards the end of 2008, which followed its earlier acquisition (original news).
So what of the email problems and other service disruption? According to Kaye, most of the problems were indeed caused "whilst a number of services were consolidated," though many customers will be frustrated that the true extend of the situation was not communicated to them sooner.
The new management claims that the situation was "absolutely not our intention" and that details provided as part of Zetnet's acquisition did not correctly identify all customers with a dependency on the migrated systems.
Breathe's new CTO, Nick Pulsford, confirmed that the provider is already beginning to implement improvements to its support infrastructure. Customers can apparently expect to feel the benefit of this from tomorrow.
UPDATE @ 13:06
The Register has a very interesting take on this story and one that appears to differ quite a lot from the 'official line':
http://www.theregister.co.uk/2009/07/23/breathe_networks_ltd/
The story claims that Breathe and not ZetNet has applied to be struck off the UK Register of Companies (on Tuesday). It also notes that Breathe had not paid its bills to Spider Networks Ltd. for email services, thus the ISP moved to a different operator and hence all the recent problems. We had been contacted by Spider earlier in the week but they have not yet responded to our reply.
Apparently The Register also called the ISPs London office only to find it was empty with the answering individual being unsure of whether anybody would return. Its common knowledge that Breathe's former CEO, Marcus East, left the business earlier this year, although details remain scarce as to why.
We would surmise, given the time line, that Breathe's PR blurb today is the latest move to follow on from all this. The plot, as they say, thickens.
UPDATE @ 16:49
Here's a new statement we have just been sent from Spider Networks:
UPDATE @ 24th July - 7:41am
The Register has posted a new story after speaking with Steve Kaye, which appears to confirm a lot of the original news items Press Release:
http://www.theregister.co.uk/2009/07/23/breathe_networks_breathe_internet/
It's understood that the situation arose after ZetNet, which is one of two ISPs operated by Breathe (the other being Fast4), was forced to enter Administration on July 16th. ZetNet is known to have been going through a difficult management restructure towards the end of 2008, which followed its earlier acquisition (original news).
Steve Kaye, Managing Director of Breathe Internet - the new owner(s), informed ISPreview:
"It's no secret that Breathe has had a turbulent past. The expansion plans of the group were ambitious but that ambition over took what was practical, achievable and reflective of the current economy. The absolute primary objective for us now is to take the business back to basics focus on what were good at, build upon a number of prominent brands in the UK internet industry but mostly repair what has caused our customers challenges in the past.
More important than any level of investment is about bringing in the right skill to manage every aspect of the business effectively and enact positive plans for improvement. The new business is not only well financed but financed and managed by people with considerable industry experience. We’re excited and confident about the challenge ahead and are looking forward to exhibiting the capability of the new Breathe Internet".
"It's no secret that Breathe has had a turbulent past. The expansion plans of the group were ambitious but that ambition over took what was practical, achievable and reflective of the current economy. The absolute primary objective for us now is to take the business back to basics focus on what were good at, build upon a number of prominent brands in the UK internet industry but mostly repair what has caused our customers challenges in the past.
More important than any level of investment is about bringing in the right skill to manage every aspect of the business effectively and enact positive plans for improvement. The new business is not only well financed but financed and managed by people with considerable industry experience. We’re excited and confident about the challenge ahead and are looking forward to exhibiting the capability of the new Breathe Internet".
So what of the email problems and other service disruption? According to Kaye, most of the problems were indeed caused "whilst a number of services were consolidated," though many customers will be frustrated that the true extend of the situation was not communicated to them sooner.
The new management claims that the situation was "absolutely not our intention" and that details provided as part of Zetnet's acquisition did not correctly identify all customers with a dependency on the migrated systems.
Steve Kaye added:
"As a result, a number of customers were left with limited or without service for which we would like to express our most sincere apologies. With the additional head count within our support team as of tomorrow we are expecting to bring a resolution to all outstanding issues within the coming days.
I would like to take this opportunity to thank all Breathe staff including those at ZetNet for their relentless dedication to our business during this challenging time. Whilst there has been much speculation we intend on retaining the ZetNet brand and the returning the customer service value is has always stood for since 1994."
"As a result, a number of customers were left with limited or without service for which we would like to express our most sincere apologies. With the additional head count within our support team as of tomorrow we are expecting to bring a resolution to all outstanding issues within the coming days.
I would like to take this opportunity to thank all Breathe staff including those at ZetNet for their relentless dedication to our business during this challenging time. Whilst there has been much speculation we intend on retaining the ZetNet brand and the returning the customer service value is has always stood for since 1994."
Breathe's new CTO, Nick Pulsford, confirmed that the provider is already beginning to implement improvements to its support infrastructure. Customers can apparently expect to feel the benefit of this from tomorrow.
UPDATE @ 13:06
The Register has a very interesting take on this story and one that appears to differ quite a lot from the 'official line':
http://www.theregister.co.uk/2009/07/23/breathe_networks_ltd/
The story claims that Breathe and not ZetNet has applied to be struck off the UK Register of Companies (on Tuesday). It also notes that Breathe had not paid its bills to Spider Networks Ltd. for email services, thus the ISP moved to a different operator and hence all the recent problems. We had been contacted by Spider earlier in the week but they have not yet responded to our reply.
Apparently The Register also called the ISPs London office only to find it was empty with the answering individual being unsure of whether anybody would return. Its common knowledge that Breathe's former CEO, Marcus East, left the business earlier this year, although details remain scarce as to why.
We would surmise, given the time line, that Breathe's PR blurb today is the latest move to follow on from all this. The plot, as they say, thickens.
UPDATE @ 16:49
Here's a new statement we have just been sent from Spider Networks:
Spider Networks Ltd.
"We have just been informed from the ISPreview that Breathe have completed a management buyout. As a creditor of the old Breathe company Spider Networks has a significant claim. We were not informed of this buyout by the administrator and will be investigating further.
Spider was contracted by old Breathe to supply email services for a number of their customers excluding ZetNet. We became aware through many customer complaints last weekend that their emails had been migrated to another email provider resulting in the loss of all their past emails, folders and address books. We stepped in quickly to allow users to access their old data.
We have had a very positive response from users who have thanked us for allowing them access to their important information."
"We have just been informed from the ISPreview that Breathe have completed a management buyout. As a creditor of the old Breathe company Spider Networks has a significant claim. We were not informed of this buyout by the administrator and will be investigating further.
Spider was contracted by old Breathe to supply email services for a number of their customers excluding ZetNet. We became aware through many customer complaints last weekend that their emails had been migrated to another email provider resulting in the loss of all their past emails, folders and address books. We stepped in quickly to allow users to access their old data.
We have had a very positive response from users who have thanked us for allowing them access to their important information."
UPDATE @ 24th July - 7:41am
The Register has posted a new story after speaking with Steve Kaye, which appears to confirm a lot of the original news items Press Release:
http://www.theregister.co.uk/2009/07/23/breathe_networks_breathe_internet/
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Comments: 23
caliphPosted: 23 July, 2009 - 12:46 PM
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Have a look at what Breathe have just done to Zetnet, Zetnet was founded years ago as a local ISP for Shetland then it grew to encompass much of Scotland before moving south, it has a very loyal and friendly user base many of us having been with the company for up to fifteen years.
We have our own newsgroups and regularly arrange meets around the British Isles but Breathe have desimated Zetnet, no email, no newsgroups until with the help of the only person who knew how Zetnet worked we got them back.
Websites collapsed and many businesses have suffered large financial loss because of Breathe , many of the old guard have set up a newsgroup system on Yahoo.
Breathe totally screwed up Zetnet from the beginning, I hope they now go down the tubes totally and irretrievably so we never have to put up with them again, they are to the internet what Pig Flu is to us.....
tjPosted: 23 July, 2009 - 12:51 PM
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So do we really think that this is the whole truth, and nothing but the truth? The two individuals named above are unlikely to be the ones in charge.
They keep talking about "since 1994" but the Breathe has been through so many pairs of hands (often same hands, more than once) that this is meaningless.
Breathe Internet Ltd no. 06904784 was incorporated on 13/5/09 so this has been planned for some time.
Standard procedure. Buy an ISP, let it fail, have a new company waiting to buy the assets, leave the debts behind, job done. Not like this is the first time it's been done.
Zetnet's death-knell was sounded the moment Breathe took over.
If the new owners really are completely unrelated to the previous owners, they have a lot of uphill work to convince people that the same isn't going to happen all over again in six months time.
MarkJPosted: 23 July, 2009 - 1:17 PM
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It's getting really interesting now:
http://www.theregister.co.uk/2009/07/23/breathe_networks_ltd/
mousemacPosted: 23 July, 2009 - 1:52 PM
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It's getting really interesting now:
All I'm interested in now, MarkJ, is getting my three weeks' worth of mail.
I've already signed up with another ISP and, as soon as Zetnet stops squatting on my ipstag like it was a po, I will be off.
John BuckesPosted: 23 July, 2009 - 3:08 PM
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Looks like they up to no good, get out if you can before they charge your credit card again.
I've already signed up with another ISP (BT)
pj1965Posted: 23 July, 2009 - 3:13 PM
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looks like the same fiasco they created with v21, what a bunch of numptys. They must think their customers are as stupid as they are. I went to see the Surrey office and it's a barbers shop, I suppose they're used to cutting services... :)
AbsentPosted: 23 July, 2009 - 6:21 PM
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I wouldn't really expect any more than shady service and PR spin from Steve "Fast4" Kaye.
SkipweaselPosted: 23 July, 2009 - 7:22 PM
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I'd been with Zetnet for over a dozen years and had been very pleased with them until last month. Now I have email that only works once in a while and no news feed at all.
I probably wouldn't mind that if I knew something was being done - before I could ring Paul and within a few minutes it'd all be happy again. Now I can't get an answer by email, phone or even post. Worse, the MotD is plainly a lie - unless "All services appear normal" is really how Breathe expect to treat us.
No one has told me anything, there's not been any info on Zetnet's website or Breathe's, the whole thing has just become a pigpile.
If I can find out who to ask, I'll be asking for a refund for the portion of my year's subscription which has not been fulfilled. Were I allowed to swear, my remaining 100 or so characters would be spent on the foulest words I could think of.
AppinPosted: 23 July, 2009 - 7:34 PM
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And Skipweasel's not alone in the way he's been treated.
Mercifully, many Zetnet customers have been with Zetnet for over 12 years, know each other through exclusive Zetnet user groups and are a resourceful bunch who are strong on the mutual help front. Also a bit older and more mature than average. They've worked out a simple way of downloading by FTP the missing POP3 email which has been dumped into the proprietary Zimacs system and extracting it into a usable form. They've also had a published workaround for the newsfeed problem.
The customers are Zetnet's biggest asset -- but they're not likely to believe the rubbish that has come out of the various incarnations of Breathe over the past month.
If the latest incarnation of Breathe has something to say, why didn't they tell their customers FIRST?
TrevPosted: 23 July, 2009 - 7:39 PM
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Looks like they've been bought out by the very people who turned the whole thing into a disaster - great!
As for their claim about "details provided as part of Zetnet's acquisition did not correctly identify all customers", that might be because Breathe got rid of one of the most important people in Zetnet and left the two tech support guys to cope without adequate access.
Maybe it's finally time Steve and co explained this in court.
istracpsbossPosted: 23 July, 2009 - 8:19 PM
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The shyster Kaye's comments might be half believable if it weren't for his track record. Whilst the current financial climate is undoubtedly difficult, it wasn't when he was screwing up other ISP's clients, details of which can be found on ISPReview's archives.
The whole episode has shown that the regulatory system in the UK is totally useless in protecting users and has been designed to protect scum like Kaye, who cynically takes advantage of it.
SkipweaselPosted: 23 July, 2009 - 10:41 PM
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Appin - you wouldn't fancy telling me how, would you? You can reach me at skipweasel (at) googlemail dot com
Thanks.
pj1965Posted: 24 July, 2009 - 12:14 PM
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Chesterton told us that "significant secured creditor" Unicorn Worldwide Holdings Ltd was owed "several hundred thousand [pounds]".
So who are Unicorn Worldwide Holdings then?
They don't appear on Companies House register, and nothing on Google either? This sounds more and more dodgey by the minute.
torquetto jubbliPosted: 24 July, 2009 - 1:46 PM
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@pj1965 : Quite - or at least not in the UK.
Put quotes around it and the first result back was a sample contract this that name in it - so my initial reaction (partly due to low expectations) was that this was a random example name like example.com with no basis in reality.
There *is* a company of that name registered in the Virgin Islands but there's no guarantee if it's the right one.
Either way, it does serve to highlight the detail of the business model - have one secured creditor (possibly even indirectly yourself) with a big enough bill to hoover up any payment that the administrators get, leaving everyone else with unpaid bills.
"This is a completely legitimate business enterprise" and other such remarks, though someone once told me in a Worf-like voice "The Ferengi have no honour".
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