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14-09-2014, 09:07 PM
Thousands of jobs at Phones 4u are at risk after the retailer says it was forced into administration after network operator EE joined Vodafone in cutting ties with the firm.
The retailer, which employs 5,596 people, says its 550 standalone stores will be closed until the administrators decide on whether the business can reopen for trading.
The company said the decision by EE not to renew its current contract, which is due to end in September next year, was a "complete shock" and meant it would be left without a single network partner after Vodafone said earlier this month that it would not extend its agreement.
As a result Phones 4u, which has profits of more than £100m, said it had no option but to call in the administrators.
David Kassler, chief executive of Phones 4u, said: “Today is a very sad day for our customers and our staff.
"If the mobile network operators decline to supply us, we do not have a business.
"A good company making profits of over £100m, employing thousands of decent people has been forced into administration.
"The great service we have provided should have guaranteed a strong future, but unfortunately our network partners have decided otherwise.
"The ultimate result will be less competition, less choice and higher prices for mobile customers in UK."
Staff have been asked to report to work as normal on Monday morning when they will be briefed by management.
Stefano Quadrio Curzio of BC Partners, Phones 4U's private equity owner, said: “Our overriding concern is for all the dedicated hard-working employees of Phones 4u at a time of uncertainty for the company.
"Vodafone has acted in exactly the opposite way to what they had consistently indicated to the management of Phones 4u over more than six months.
"Their behaviour appears to have been designed to inflict the maximum damage to their partner of 15 years, giving Phones 4u no time to develop commercial alternatives.
"EE's decision on Friday is surprising in the context of a contract that has more than a year to run and leaves the Board with no alternative but to seek the Administrator's protection in the interests of all its stakeholders."
Source: http://news.sky.com/story/1335864/retailer-phones-4u-forced-into-administration
Not good news for the 5,596 people who they employ.
The retailer, which employs 5,596 people, says its 550 standalone stores will be closed until the administrators decide on whether the business can reopen for trading.
The company said the decision by EE not to renew its current contract, which is due to end in September next year, was a "complete shock" and meant it would be left without a single network partner after Vodafone said earlier this month that it would not extend its agreement.
As a result Phones 4u, which has profits of more than £100m, said it had no option but to call in the administrators.
David Kassler, chief executive of Phones 4u, said: “Today is a very sad day for our customers and our staff.
"If the mobile network operators decline to supply us, we do not have a business.
"A good company making profits of over £100m, employing thousands of decent people has been forced into administration.
"The great service we have provided should have guaranteed a strong future, but unfortunately our network partners have decided otherwise.
"The ultimate result will be less competition, less choice and higher prices for mobile customers in UK."
Staff have been asked to report to work as normal on Monday morning when they will be briefed by management.
Stefano Quadrio Curzio of BC Partners, Phones 4U's private equity owner, said: “Our overriding concern is for all the dedicated hard-working employees of Phones 4u at a time of uncertainty for the company.
"Vodafone has acted in exactly the opposite way to what they had consistently indicated to the management of Phones 4u over more than six months.
"Their behaviour appears to have been designed to inflict the maximum damage to their partner of 15 years, giving Phones 4u no time to develop commercial alternatives.
"EE's decision on Friday is surprising in the context of a contract that has more than a year to run and leaves the Board with no alternative but to seek the Administrator's protection in the interests of all its stakeholders."
Source: http://news.sky.com/story/1335864/retailer-phones-4u-forced-into-administration
Not good news for the 5,596 people who they employ.