Phones 4U administrator to close remaining 362 stores with loss of nearly 1,700 jobs
The administrator of Phones 4U is to close the remaining 362 stores with the loss of nearly 1,700 jobs.
The company, which had more than 700 outlets and 5,500 staff, collapsed last week after mobile phone firms EE, Vodafone and other networks declined to renew their contracts.
Some of the stores have been saved but there was limited interest in the balance of the estate.
PwC last night said 362 stores would close permanently with the loss of 1,697 staff.
Rob Hunt, joint administrator and PwC partner, said: ‘It is with much regret that we have today made the difficult decision to close a large number of stores. It is a very sad day for the staff working at those locations.’
The decision came just hours after EE agreed to buy 58 stores on the cheap, saving 359 jobs.
This comes hot on the heels of Vodafone buying 140 stores that employed 900 staff.
Another 720 people have been retained in the short-term to assist with the closure programme.
PwC has asked law firm Allen & Overy to see if there is a claim to be brought against the mobile phone networks.
Phones 4U was founded by entrepreneur John Caudwell in 1987, who sold the firm for £1.46bn in 2006 to Providence Equity Partners before it was bought by private equity firm BC Partners in 2011.
BC bought the retailer for £200m, but raised eyebrows in September by taking £200m out of the business in the form of a dividend last year. It loaded the business with debt to the tune of £505m.
But it blamed the mobile operators for its demise.
In return, Vodafone blamed BC Partners for the collapse saying Phones 4U was unable to negotiate competitive rates because of its debt issues.
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