Gigaclear, a major UK broadband provider with over 160,000 customers, is on the verge of collapse after amassing debts exceeding £1 billion. The company, which built a full-fibre network in rural England, failed to attract sufficient interest from potential buyers during a sale process.
The financial troubles stem from a cash injection from shareholder Equitix that reportedly never materialised in 2023. Creditors, including the UK taxpayer-backed National Wealth Fund and banks such as NatWest and Lloyds, are set to take control of the heavily indebted provider, according to the Financial Times.
Gigaclear had been heralded as a modern challenger brand, offering faster speeds at competitive prices. However, it faced rising costs, high interest rates, and intense competition, leading to job cuts and scaled-back expansion plans. The company had aimed to extend its network to one million homes.
Despite the crisis, CEO Nathan Rundle expressed optimism last month about £80 million in new funding, stating the business was “financially secure” and “operationally robust.” A spokesperson added that stakeholders remain supportive and are exploring options for the company’s long-term success.
