A Leeds based broadband company, Makehappen Group collapsed into administration earlier this week. This administration is bound to affect several key deployments of gigabit-capable full fibre (FTTP) broadband networks across the UK. Close to 165 employees were immediately made redundant by the civil engineering firm. 

The broadband company emerged on the scene in 2019 when FibreNation, a project previously under TalkTalk, revealed their collaboration to establish their FTTP network throughout the UK. Since then, Makehappen secured additional full-fibre contracts with various operators, including Upp and CityFibre, for locations such as York, Chester, Harrogate, Knaresborough, and Ripon.

Despite this, the firm has faced many struggles for the better part of the last two years. They were primarily grappling with cash flow difficulties due to the loss of contracts. In the most recent accounts, the company managed to narrow its losses from £4.6 million to £2.07 million in 2021. However, it still owed £6 million to HMRC and £5 million to Fibrenation, with the latter being under a standstill agreement until later in the year. 

The company actively aimed to secure more funding, cut costs and boost revenues from in the next 12 months. However, despite their history of obtaining funding when necessary, support from certain creditors remained uncertain.

Realising this inability to sustain operations, the decision was made to seek assistance from administration specialists at Interpath, who have now assumed control. Unfortunately the administrators have confirmed that Makehappen will not reopen its doors. 

In today’s post-pandemic and challenging economic landscape, network operators are encountering significant operational hurdles. These include rising costs (e.g., construction and leases) and competition from rivals like overbuilding. It is also becoming tough to attract enough consumer numbers to keep investors satisfied. 

As a result, several providers have already restructured or reduced their expansion plans. Makehappen Group is the latest business to be directly impacted by these challenges. As the company undergoes an orderly wind-down, their priority is to provide support to all employees, including assisting them with the necessary information to make claims from the Redundancy Payments Office.

Many more businesses like Makehappen Group are falling into distress everyday, and seeking investors who can help them regain stability and profitability. Stay tuned with updates from Administration List to identify such opportunities and stay on top of your investment game.