A PRIZE-WINNING cutting edge company has collapsed with debts of more than £100,000.

Telabria, a past winner of the Kent Innovation Challenge, formally went into liquidation this week.

The business was founded by Jim Baker and took wireless - or WiMAX broadband connection - to rural areas and the outskirts of towns. It gained widespread publicity for linking up with Faversham brewer Shepherd Neame and taking broadband into a number of country pubs.

Faroese Telecom, based in the Faroe Islands, invested £200,000 in Telabria, which was based at Kent Science Park, Sittingbourne. The company also won thousands of pounds in cash and kind for winning the Challenge.

Mr Baker had hoped to roll out his services across Kent, Essex, Suffolk and Sussex and to double staff numbers to more than 20. He already attracted subscribers in Sittingbourne and Canterbury and planned to extend the scheme to Medway, Ashford, Thanet and Maidstone, Folkestone and Dover.

He told Kent Business a year ago: "Kent’s a good market with 1.5million people, 650,000 households and 60,000 businesses. It’s a terrific opportunity."

But his dreams were shattered by a fiercely competitive market and insufficient cashflow to cover the high cost of technical investment. About a dozen staff were laid off after directors recognised the seriousness of Telabria’s financial situatin.

Liquidator Steve Tancock, head oft he Maidstone office of Smith & Williamson, an independent professional and financial services group, said Telabria had been unable to attract further funding to continue trading.

"The money had run out and the employees had been made redundant when I first got involved," he said, adding that estimated debts were "more than £100,000".

"It’s never been able to meet its costs from operating revenues and has always been funded by shareholders."

He added that subscribers had not been seriously affected, with other providers stepping taking over their broadband service.

Dr John Dodd, director of Sittingbourne Enterprise Hub at Kent Science Park, and organiser of the Kent Innovation Challenge, said he was sorry about the liquidation but had no regrets about helping Telabria.

"You’ve got to give these companies a chance to be successful. We never said they were all going to be winners."

He added: "I’m sure Jim will bounce back with another idea. That’s what we should be encouraging, not being too hard on people for whom it doesn’t work. I hope he stops in Kent and has another go with another business."

* Telabria creditors should contact 01622 604500.