The growing financial strain on Britain’s army of fibre broadband infrastructure providers has claimed its first casualty in the form of a rural network builder in Scotland and Wales.

Sky News has learnt that Broadway Partners, which launched in 2016, has called in administrators after its balance sheet was hit by soaring costs and rising interest rates.

The company had set an ambitious target of connecting 250,000 homes and businesses by 2025.

Industry sources said Broadway was one of many fibre infrastructure players facing severe financial pressures, with others expected to file for insolvency in the coming months.

Broadway has appointed Teneo Financial Advisory as administrator.

Its collapse puts more than 130 jobs at risk, although adequate funding is understood to be in place to keep the company trading during the administration process, while a buyer is sought.

Broadway’s collapse comes two years after it announced a funding package from Downing LLP, an investment firm which committed £145m to the altnet.

One million in UK switch off broadband due to cost of living crisis, charity warns

Zzoomm dials up merger with fibre broadband peer Trooli

Gigabit broadband for all target pledged by Boris Johnson scaled down

At the time, Broadway said its mission was to “deliver affordable, high-speed broadband services to the more remote regions of the UK, particularly Wales and Scotland where there is a notable digital divide in countryside locations”.

It added that it had already connected thousands of premises in locations including Arran, Ayrshire, Perth & Kinross, Monmouthshire and Pembrokeshire.

Read more business news:
Delta airline faces possible lawsuit
Rail strikes disruption

Other fibre network builders which have sought new investment or buyers in recent months include Trooli, another mid-sized entrant.

The market is dominated by BT’s Openreach division, but also includes large competitors such as CityFibre Holdings.

Virgin Media 02 is also a big emerging player in the industry’s rush for scale.

The pressure for consolidation has grown as costs have soared, while supply chain and labour issues have also conspired to impair altnet’s path to profitability.

Broadway could not be reached for comment on Wednesday, while Teneo declined to comment.

Related posts:

FTSE 100 rallies as chancellor plans help for home buyers Greensill stripped of state guarantee on loans to Gupta Social media policeman Crisp eyes windfall from bumper sale Bank of England resists pressure to raise interest rates as inflation spike looms Interest rates, mining sustainability and Wizz Air profits Metro Bank shares surge after it confirms takeover approach by US private equity giant Kwarteng shakes up audit watchdog board with slate of new directors Retailers fear ministers could abandon online sales tax and rates reform ‘Govt couldn’t run a sweet shop’: Ryanair chief blames Brexit labour market issues for airport chaos Meet two members of Britain’s ‘missing million’ Made.com co-founder’s ‘final’ rescue bid fails, paving way for collapse Rise in loan defaults but ‘no signs’ of wider credit crunch