UK Broadband Provider VISPA Ceases Trading Amid Liquidation Proceedings
Manchester-based internet service provider VISPA has officially ceased trading and commenced liquidation proceedings, leaving customers scrambling to secure alternative broadband connections. The company, which was founded in 1999, emailed its customer base to announce the sudden closure, advising them to immediately seek new providers and cancel any active direct debits to prevent further payments.
Customer Communications and Immediate Actions Required
In emails sent to subscribers, VISPA stated: "Vispa Limited has ceased trading and decided to commence liquidation proceedings. As a result, we regret to advise that Vispa will no longer be able to continue providing broadband services. To avoid any interruption to your connectivity, you will need to immediately choose a new Internet Service Provider (ISP) as soon as possible." The correspondence further instructed customers to "cancel any active Direct Debit or standing order you have in place with Vispa Limited to prevent any further payments being taken."
The email concluded with an apology for the inconvenience, thanking customers for their support over the years. Currently, the VISPA website is unavailable, displaying a maintenance message indicating server downtime due to capacity issues.
Historical Challenges and Industry Context
Reports from broadband news outlet ISPreview highlight that VISPA faced significant operational difficulties in recent years, including overdue accounts, problems with its legal address, and a surge of negative reviews on platforms like Trustpilot. These issues culminated in the decision to liquidate the company.
This closure follows closely on the heels of another broadband provider's collapse. Last month, G Network entered administration after accumulating approximately £300 million in debt. G Network, founded in 2016, served around 25,000 customers in London and had ambitious plans to expand its network to 1.4 million homes with a £1 billion investment. Despite efforts to find a buyer through bankers at Jefferies and Nomura, the company was unsuccessful, leading to the appointment of Alvarez & Marsal Europe LLP as joint administrators.
Unlike VISPA, G Network's administrators assured customers there would be no interruption to broadband services during the administration process. The company was previously owned by the USS pension fund and Cube Infrastructure Managers, with debt specialists FitzWalter Capital taking control before applying for administration.
The simultaneous struggles of VISPA and G Network underscore the volatile nature of the UK broadband market, where smaller providers face intense competition and financial pressures. Customers of both companies are now navigating the complexities of switching providers amidst broader industry consolidation.
