Deathwatch: Phones 4U plunge into administration
EE brought around half of Phones 4U’s sales in and Vodafone had already said that they weren't renewing their contract and O2 walked away from the retailer in February.
The business has 720 stores and employs over 5,000 people, who will be briefed tomorrow morning by management. BC Parters, Phones 4U's private equity owner, said it is "intended that employees will continue to be paid until further notice".
PwC will be appointed as adminstrators.
All the Phones 4U stores will be closed while it is decided whether the administrators can open the doors or not. If you have a mobile contract through Phones 4U, you'll be thrilled to learn that, at the moment, it doesn't change anything.
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 £100 million, 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."
There could be something fishy afoot too. Phones 4U, it has been rumoured, were considering a complaint to industry watchdogs, alleging that the mobile operators were in cahoots to reduce competition and start hiking the prices up for everyone.