TalkTalk has extended its credit terms with some suppliers for up to 300 days as it attempts to shore up its cash reserves.
Among the suppliers subject to delayed payments is The&Partnership, an advertising agency founded by Johnny Hornby.
Mr Hornby, who also co-founded beer brand Hawkstone with Jeremy Clarkson, has a long-standing relationship with TalkTalk boss Sir Charles Dunston after securing Carphone Warehouse as his first client.
TalkTalk and Mr Hornby said their extended credit terms had been in place for several years.
But other companies in the marketing sector are understood to have been affected and industry sources said a number of suppliers had expressed concerns about delayed payments in recent weeks.
TalkTalk has also benefited from supply chain financing, which allows suppliers to receive early payments via the company’s bank. The total amount owed to suppliers was £590 million at the end of August.
A cash crunch at TalkTalk, which was taken over by Toscafund in 2020, has forced bosses to pursue a break-up of the group.
In October, the company agreed to sell its business division to its shareholders for £95m after failing to find a third-party buyer.
TalkTalk is also understood to have received offers for a stake in its wholesale operations from infrastructure funds including Florida-based DigitalBridge.
The wholesale division is thought to be worth around £1.5bn, meaning the bosses could raise several hundred million pounds from the sale of a minority stake, which will be crucial to the looming refinancing.
However, analysts have questioned the division’s value as its main revenue source comes from TalkTalk’s retail business, which shed 100,000 customers in the first quarter alone.
James Ratzer, an analyst at New Street Research, said TalkTalk faces a “two-fold consequence” from the sale.
He said: If they can sell a share in it [the wholesale platform] Then there is a clear path to refinancing.
“But if bidders withdraw, it will depend on whether shareholders want to inject money.”
TalkTalk’s revenue rose 3% to £748m in the first half of the year as higher prices offset customer losses, but losses more than tripled to £44m as inflation and rising interest rates pushed up costs.
A TalkTalk spokesman declined to comment.