UK broadband provider Gigaclear is facing potential collapse amid reports of debts exceeding £1 billion.

Despite having over 160,000 customers, the company’s financial struggles intensified after failing to attract sufficient buyer interest.

Gigaclear’s financial woes have led creditors to take control to address the debt, which allegedly ballooned following a reported non-appearance of a cash injection from shareholder Equitix in 2023.

Initially lauded for introducing a full-fibre network in rural areas of England, Gigaclear has encountered challenges in a competitive market, resulting in job cuts and operational retrenchment due to escalating costs and interest rates.

Notable creditors, including the UK’s National Wealth Fund and banks like NatWest and Lloyds, are poised to assume ownership of the heavily indebted broadband company, as per a report by the FT.

Despite the financial turmoil, Gigaclear’s CEO, Nathan Rundle, expressed optimism over securing £80 million in new funding and outlined plans to expand network coverage to 1 million UK homes.

Highlighting ongoing stakeholder support, a Gigaclear spokesperson affirmed collaborative efforts to explore viable options ensuring the long-term prosperity of the company and favorable outcomes for all involved.