In January, the credit ratings agency Fitch downgraded TalkTalk another notch to CCC, meaning a default is considered "a real possibility". Attempts to sell the wholesale arm are part of a broader break-up plan. In September, a syndicate of the group's existing shareholders bought its business unit for £95m, and its consumer arm is also expected to be put up for sale. Management have also cut sales and marketing spend by 40pc in a bid to rein in costs. TalkTalk declined to comment.