Retailer Phones 4u 'Forced Into Administration'

[xxMATTGxx]

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/re...administration


Not good news for the 5,596 people who they employ.

[Sharon]

oh wow lol feel sorry for the ppl with jobs there tbh! but is it unexpected they don't wanna renew contracts? not really, i don't know any1 that actually goes to phones4u for their phone

quick sell the MEN arena it's the worst thing ever calling it phones4u

[GommeInc]

Unfortunately it's just a victim of the times. With the recession phone companies contracted and focused on their own presence rather than go through outlets like Phones4U and Carphone Warehouse, the latter now part of Dixons PC - commonly known as Currys/PCWorld. So this was either going to be an inevitable closure or it would have been bought out, depending on any debts it may have and if it would be affordable for another company to take over.

Judging by it going in the administration, it looks as though buying out may not be an option and it just has too much debt, but then again companies can get good deals once they know a company is going bankrupt or simply in administration. If it is bought out, it would probably still disappear from the High Street. Carphone Warehouse has (mostly) vanished because Dixons PLC wanted the mobile business part of their business bolstered and with that acquisition they can incorporate it into their Currys/PCWorld franchise, which I think they are slowly rolling out. There might be a few shops still called that but it is meant to be called Dixons Carphone.

[Alkaz]

I find it hardly surprising. The last few times I have been into phones4u they haven't had any of the latest models of phones and I ended up going direct to the mobile service provider to get my phone. I think it's been a long time coming.

[Kardan]

PHONES 4 U, 4 LESS, AT PHONES 4 U.

To be honest, I'm surprised they still exist, I've not heard about them in years.

[peteyt]

Had a job interview a month or so with them and didn't get the job. Kind of glad now

[scottish]

Vodafone is set to buy 140 stores that Phones4u own, saving 887 jobs.

628 head office/telesales employees have been made redundant after it's entered administration.

[peteyt]

I heard the closure is because they want to sell the deals themselves and if this is the case what is different about carphone warehouse

[scottish]

I heard the closure is because they want to sell the deals themselves and if this is the case what is different about carphone warehouse

Different contract, different prices, different amount of clients, different deals, different everything basically.

[lemons]

EE buying some stores to

lol i guess the phones4u near me will be closing since there is already an EE and Vodafone store on either side of it