Retailer Phones 4U enters administration putting 5,596 jobs at risk.
Mobile telecoms retailer Phones 4U, which is owned by private equity firm BC Partners, has announced that it has entered administration putting 5,596 jobs at risk, all 550 stores will also be closed on Monday 15th September.
Phones 4U boss David Kessler has blamed mobile network EE's decision not to stay with the company following Vodaphone who also refused to renew their contracts with the retailer earlier this month. The reasons for this seem unclear at the moment but it would seem as though both EE and Vodaphone are trying to keep their contracts in house, something that 3 have thrived on since their beginnings back in 2002.
In a statement David Kessler said "If mobile network operators decline to supply us, we do not have a business".
Phones 4U have been keen to insist that current mobile contracts taken out with them will not be affected by this news. However they have pointed out that phones which have been ordered by not yet dispatched will likely be affected, this will be especially relevant to those who have just purchased the new iPhone 6.
A helpline has been set up on 0844 8712253 for any customers who may be affected or for customers who are just concerned.
Anyone visiting Phones4U.co.uk will be greated with the following somber screen.
Staff have been informed that they will be paid untill further notice and that they should return to work as normal.