Phones 4U founder kicks off

16 September 2014

Bitterwallet - Phones4U logo The man who founded Phones 4U in the '80s - John Caudwell - is not happy about the company going into administration. Of course, he's alright because he sold the firm for £1.5 billion in 2006, but despite all that dough, he's annoyed that his old project has collapsed.

Why? He's "horrified" and "desperately sad" for the nearly 6,000 staff who are going to lose their jobs or, indeed, are having a grim week while job uncertainty hangs over their heads.

Caudwell says: "They've done a great, great job. The business is a very robust, or was a very robust business, trading tremendously well, producing over £100 million of profit a year and it's a very sad day for everybody."

There's going to be some restructuring (from PwC, who have really done very well out of the recession and a number of companies going into administration) and shops may well be opening again, but there's some outstanding wages to be paid out and that is dependent on accessing the money to pay for the costs of the business.

This all kicked off with major mobile operators ditching the firm and the last straw was EE walking away.

Phones 4U said EE's decision was a "complete shock", while everyone else mutters conspiratorially about whether or not the mobile operators were in cahoots in a bid to get their prices up elsewhere. Some think that Phones 4U have been shafted by greedy mobile operators, while others think that Phones 4U were mercilessly greedy themselves and saw this coming a mile off.

The Telegraph have a video interview with John Caudwell if you want to hear his thoughts. Meanwhile, the staff in the Phones 4U store in Manchester left a message for their customers, with the addition of some helpful phone numbers for any worried readers.

68937_10152394562086028_1300925209909814925_n

 

TOPICS:   Mobile   High Street News

2 comments

  • Rob
    a sad day for competition in sector with only car phone warehouse left.. wouldnt like to own any of the shares.
  • Han S.
    If he's that horrifed he could always buy them back and take them out of administration

What do you think?

Connect with Facebook, Twitter, or just enter your email to sign in and comment.

Your comment