Phones4U staff may not get full wages
The Independent has seen an internal document sent to the chain’s 5,596 staff, which says that they will be getting some money as administrators look for a buyer, but they "may not receive the full amount of pay that they’d usually expect to receive" and that "a decision regarding outstanding accrued bonuses and commissions is currently under review".
Of Phones4u have £110m in the bank, has £89m worth of stock and is owed £147m by debtors, which won't please people who have just lost their jobs. However, there's the little matter of debts, which stand at somewhere in the region of £760m.
Looks bleak for Phones4u.
Administrator Rob Hunt added: “Over the course of the last few days we have considered all the restructuring options … [but] there is no realistic prospect of a debt-for-equity swap.”
The staff may be getting taken on by the Carphone Warehouse/Dixons merger, so there's hope yet.