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Technology / AI and automation

Phones 4u falls into administration after EE pullout

UK mobile retailer Phones 4u has fallen into administration over the weekend following EE’s termination of the network’s contract.

EE was the last remaining network partner that had a relationship with Phones 4u, following Vodafone’s termination earlier this month which will see its contract end in February 2015.

Over 5,500 jobs are now at risk, at the company said its stores will be closed awaiting a decision from administrators to decide its imminent future.

Phones 4u said that EE’s decision was a "complete shock". The firm has 550 UK stores and employs 5,596 people.

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Chief executive David Kassler 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."

A statement from Phones 4u said: "The unexpected decisions by both Vodafone and EE have come as a complete shock to the business. The company is in a healthy state and both EE and Vodafone had, until very recently, consistently indicated that they saw Phones 4u as a long-term strategic partner."

Phones 4u has said that mobile contracts with the shop will remain unaffected and EE will still provide mobile services to Phones 4u customers.

This article is from the CBROnline archive: some formatting and images may not be present.