50 jobs at risk as TalkTalk demerger and sale progresses
Telecoms company TalkTalk is splitting its operations into three in readiness for the sale of the business division with the likely loss of 50 jobs.
Staff have been warned that the formal demerger of Salford Quays headquartered business into three separate operations (TalkTalk Consumer, TalkTalk Business Direct and the Wholesale business), will result in job losses and the full legal demerger of the businesses will be completed by March the 1st 2024.
TalkTalk was formed by the merger of Sir Charles Dunstone’s Carphone Warehouse Group and Opal Telecom, founded by entrepreneur Neil McArthur. The business has always maintained a strong presence in the North, firstly at a site in Irlam close to McArthur’s home and more recently at a technology campus at Soapworks in Salford Quays.
The urgency behind the demerger is that TalkTalk as a whole has a £330m revolving credit facility due to mature in 2024 November and a further £685m worth of debt maturing in February 2025.
Higher interest rates have reduced the options for Dunstone, who took TalkTalk private in £1.1bn deal with Toscafund in 2021.
The recent surge in interest rates means the company faces higher borrowing costs.
The businesses are still based at Soapworks, but 50 jobs are understood to be at risk of redundancy.
It is understood that Tom O’Hagan will be made chief executive of Wholesale Platform business.
Adam Dunlop is to become the new chief executive of TalkTalk Consumer, which provides home broadband and phone services.
TalkTalk Business Direct is undergoing a sales process – most likely to Daisy Communications.