Phones 4U enters into Company Administration
Last week saw Phones 4U enter into Company Administration, which has already resulted in a number of redundancies for their staff as the restructuring process of the company begins.
The chain of shops was established in the 1980s by John Caudwell who commented on the situation by blaming Vodafone and EE who refused to supply the retailer in a strategy to reduce their competition.
Despite Phones 4U making millions in profit last year, once a number of the popular phone networks stopped selling their phones with them, it crippled their business. The phone networks 3 and O2 stopped selling phones through Phones 4U earlier this year, Vodafone withdrew its business a few weeks ago and EE withdrew their business just before it was announced Phones 4U was entering into Company Administration.
A total number of 362 stores have been confirmed to close which has resulted in 1,697 redundancies.
It has been announced that Vodafone would take over 140 Phones 4U stores which will help to preserve 887 jobs, and EE has announced it would take over 58 Phones 4U stores which will help to secure 359 jobs.
PwC who were appointed Administrators and Rob Hunt, Administrator commented: “Our initial focus will be to quickly engage with parties who may be interested in acquiring all or part of the business, and to better understand the financial position and options for the company.”