Whitehall on alert as TalkTalk edges towards administration

The company, which employs around 900 people, carries debts of £1.4bn after a 2020 buyout led by founder Sir Charles Dunstone and lender Ares Management. A planned sale of its wholesale arm, PXC, to Octopus Investments for around £300m has faltered, while a rival £100m offer for its consumer arm has been halved by Opus.

Officials are examining whether keeping TalkTalk running during administration could cost taxpayers money, with no special administration regime for telecoms as exists for water. TalkTalk is in arrears with Openreach, and a transfer to BT as a possible supplier of last resort is being discussed, alongside concerns for over 250,000 vulnerable customers.