Broadband ISP Gigabit Networks Appoints Insolvency Practitioner
Leicester-based UK broadband ISP Gigabit Networks has today confirmed to ISPreview that, despite putting their best efforts toward attempting to refinance the business, the provider was ultimately unsuccessful and recently appointed a licensed insolvency practitioner to help navigate the situation.
The confirmation probably won’t come as too much of a surprise to our readers, given that the provider had already shifted their residential customer base over to the Telecom Acquisitions Group (i.e. Home Telecom) between June and August 2024 (here and here). But this was initially promoted as a means for the ISP to re-focus on their wholesale and channel business instead.
Despite this, we recently heard that Gigabit Networks’ business and channel customers were now being looked after by Global4, which meant that there wasn’t much of a business base left. The current situation isn’t yet being reflected via Companies House, but the provider’s CEO, David Yates, was kind enough to provide an update.
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David Yates, Gigabit Networks CEO, told ISPreview:
“It has been a difficult time in the market and number of factors conspired against Gigabit Networks and its ability to trade profitably. Mounting bad debt within the consumer side of the business coupled with the cancellation of a significant new investment from existing investors put the business in an untenable situation.
Despite our best efforts to refinance the business we were ultimately unsuccessful. As a result, we appointed a licensed insolvency practitioner last month.
All customer services have been maintained throughout this time and have now been transferred to Telecom Acquisitions Ltd as previously reported by ISP Review.”
Naturally, our thoughts go out to the company’s staff too, who will hopefully be able to find a new home. Such situations can be very disruptive for all involved, particularly customers, but it could also be seen as a reflection of the difficult trading environment that many ISPs and network operators currently find themselves inhabiting.
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on X (Twitter), Mastodon, Facebook, BlueSky, Threads.net and Linkedin.
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How were they making money? Never heard of them as a wholesaler and using their post code checker dumps me on to home telecom.
Another one bites the dust.
It’s almost as if selling at / below cost isn’t a viable long term business model. They look to have turned off at least some of their peering on LINX a couple of days ago
That is a shame, will make the Openreach bunch on here happy, another one gone and more for their precious openreach.
Hopefully, they will be taken over, that is, if there is anything left to be taken over.
They didn’t compete with Openreach, they weren’t an altnet. The article calls them an ISP for a reason.
They have no relationship to Hereford which probably explains why you’ve no idea about them.
@Witcher, Fair enough, I heard the name a few times, but that is it,
They are going nowhere , no one leave infrastructure to rot, they will have a new name and a new CEO very soon, even if sold for a pound.
They don’t have any infrastructure!
Not exactly a bellwether of the altnet industry. As others have said their an ISP not an altnet/network builder.
Given they offloaded their residential base, and now their business base, there’s no business left. It’s hardly a surprise the shell has appointed an IP!
That makes sense.
Which IP has taken the job?