posted 27th March 2026
When a telecoms provider goes under, many business owners assume their problem ends there. Unfortunately, that is often the moment the real problem begins.
Zappie Communications Ltd has now entered creditors’ voluntary liquidation, with the winding-up resolution dated 19 March 2026 and the appointment of liquidators recorded in The Gazette on 24 March 2026.
For many businesses, that will raise an urgent question:
What happens to the finance agreement I was persuaded to sign alongside the telecoms contract?
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The short answer is this: The finance company may still pursue you for every remaining payment unless you take action.
Why this matters
In many of the cases we deal with, the telecoms agreement and the finance lease are presented as if they are one package. The business owner is told they are signing up for a phone system, broadband, hosted telecoms, or handsets at an affordable monthly price. What is often not properly explained is that there may also be a separate lease or rental agreement running for far longer than the service contract itself. That distinction is critical.
If the telecoms provider collapses, stops supporting the system, or never delivered what was promised in the first place, the finance company may still say: “Your lease is separate. You still have to pay.” That is exactly why so many businesses get trapped.
Zappie’s liquidation does not automatically cancel your lease
A company going into liquidation does not automatically wipe out every connected agreement. In liquidation, control of the company passes to the liquidator, who gathers in and realises assets for creditors. The company usually stops trading, but contracts are not simply erased by default. So if you signed a third-party finance lease for telecoms equipment, handsets or associated hardware, the finance company may continue to demand payment even if:
- The telecoms service has failed
- The system was mis-sold
- The supplier has disappeared
- The business no longer wants or needs the equipment
Will Leo Communications take over Zappie’s contracts?
This is where businesses need to be careful. Public filings show clear overlap between Zappie Communications Ltd and Leo Communications Ltd.
Both companies use the same Southampton registered office. Companies House records also show that Michael John Connolly and Jamie Glenn Pidgley have been directors of both businesses.
Leo Communications Ltd is still active and was incorporated in April 2021, having traded previously as Simple Cloud Communications Ltd.
That overlap is enough to make customers ask serious questions.
But it is important to be accurate: shared directors, shared addresses and a similar line of business do not by themselves prove unlawful phoenix activity. The Insolvency Service explains that “phoenix companies” are businesses that rise from an insolvent company’s ashes, and there are legal restrictions around reusing names or carrying on in a way that misleads creditors or the public. So, could Leo Communications take over Zappie contracts?
Possibly, but not automatically.
For Zappie’s contracts to move to another company, there would usually need to be some proper legal mechanism, such as a sale of assets or a transfer/novation arrangement through the insolvency process. In other words, customers should not assume that Leo has “taken over” unless and until there is a clear legal basis and proper notice.
If you are told that another company is now handling your services, that does not necessarily mean your legal position is unchanged. It may be highly relevant to whether the original deal was transparent, whether obligations were explained properly, and whether the structure of the deal can be challenged.
Why businesses should not ignore letters from the finance company
This is the part many business owners underestimate. If you ignore the finance lease because the supplier has gone bust, the finance company may continue collection activity, issue default notices, add charges, instruct debt recovery agents, or threaten legal proceedings. That is because the finance house will often argue that its agreement stands alone.
And unless that agreement is challenged properly, the finance company may behave as though the matter is straightforward. It often is not.
Where there has been misrepresentation, lack of transparency, pressure selling, hidden documentation, unaffordable terms, or a mismatch between what was promised and what was actually signed, businesses may have grounds to dispute liability and seek an exit.
What you should do now
If your business signed a Zappie deal, do not assume liquidation solves the problem. You should act now if:
- You signed both a telecoms contract and a separate finance agreement
- You were told the paperwork was “just for the phones” or “part of the package”
- The length or cost of the lease was not properly explained
- The system was unsuitable, overpriced, or not what you were promised
- You are now being chased by a finance company even though Zappie has gone into liquidation
Speak to us now
If your business had a contract with Zappie Communications Ltd, or if you are now being chased under a separate finance lease, contact Meridian Legal Services today.
The earlier the paperwork is reviewed, the sooner a strategy can be put in place to challenge the agreement, respond to the finance company correctly, and work to get your business out of a contract that should never have been sold in the first place.
We can review the agreement, explain where you stand, and help you take action before the finance company tightens the pressure. Because when the telecom supplier collapses, the mistake many businesses make is thinking the problem is over. In reality, that is often when the finance company starts.
