A UK broadband provider has fallen into administration after nearly two decades in business.
iTalk Telecom, which was founded in 2007 and is based in Brighton, is an internet service provider offering residential broadband and phone services.
The company, which trades as iTalk Affiliate Telecommunications Ltd, formally entered administration on August 28.
According to The Gazette, Andrew Pear and Richard Keley of Moorfields Advisory Limited have been appointed as administrators.
As Companies House notes, when a company enters administration, the process may be used to rescue a viable business that has become insolvent due to cashflow problems. It does not necessarily mean the company will stop trading.
Administration puts in place a statutory moratorium – a “breathing space” – protecting the company from creditor enforcement action while plans are drawn up to restructure its finances and, where possible, rescue it. This may involve selling the business to an unrelated party.
Specialist outlet Thinkbroadband reports that UK-based holding company Telecom Acquisitions is a potential partner to take on the customer base of iTalk Telecom.
According to the outlet, Telecom Acquisitions is in discussions with the administrators about its options, with the intention of ensuring any migration to its services takes place without disruption to customers.
Nigel Barnett, CEO of Telecom Acquisitions, told the outlet: “This is a difficult situation, but we have assurances from the suppliers that no service should be affected in the short term. We are here to support Italk’s customers and staff.”
The Mirror has contacted ITalk Telecom, Moorfields Advisory Limited and Telecom Acquisitions for comment.
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