News Articles

Monday, September 15, 2014

UK mobile phone specialist Phones 4u goes into administration

Over 5,500 jobs at risk

UK mobile phone specialist Phones 4u and a number of its associated businesses - including MVNO Life Mobile - have gone into administration today. The company says it follows the decisions of Vodafone and then EE not to renew their network agreements, which represented over 90% of all connections it made.

Image

According to a statement, “there is no reasonable prospect of avoiding insolvent liquidation” which means Phones 4u has cased trading and been placed in administration.

Phones 4u operates 550 stores along with a number of other in-store concessions. It employs 5,596 people and generates an annual turnover of over £1 billion. The shops will remain closed until the administrators make a decision about the future of the business.

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.”

Phones 4u co-founder and former CEO John Caudwell, who sold the business in 2006 for £1.47 billion, said on Twitter that he was “sickened and saddened” for the company’s employees.

Print
Author: The Fonecast
0 Comments
Rate this article:
No rating

Categories: Retailing, Networks and operators, NewsNumber of views: 15946

Tags: uk vodafone mvno phones 4u ee

Leave a comment

This form collects your name, email, IP address and content so that we can keep track of the comments placed on the website. For more info check our Privacy Policy and Terms Of Use where you will get more info on where, how and why we store your data.
Add comment

Follow thefonecast.com

Twitter @TheFonecast RSS podcast feed
Find us on Facebook Subscribe free via iTunes

Archive Calendar

«December 2024»
MonTueWedThuFriSatSun
2526272829301
2345678
9101112131415
16171819202122
23242526272829
303112345

Archive

Terms Of Use | Privacy Statement