Breathe is a privately held company with over half a million subscribers. It is owned by 3i and Chase Capital Partners, which between them paid £20 million for 35% of the company’s shares, and by founder Martin Dawes, who has a 65% shareholding. The company had aimed for a £100 million stock market floatation just three months ago.
Earlier this month, 50,000 subscribers to the ISP’s “Breathe easily” service, which involved a one-off payment of £50 for unmetered services, were told that they were being transferred to a metered service. It now seems very unlikely that they will be refunded.
The company has already been criticised for an expensive television advertising campaign while being unable to meet the demand for its services. The collapse of Breathe will add to the problems that internet companies now face in finding investment.