LEP-led taskforce galvanises efforts to support Phones 4u workers

A PUBLIC and private sector taskforce is galvanising its forces in support of the thousands of workers facing redundancy following the collapse into administration of Staffordshire-based mobile phone retailer Phones 4u.

The multi-agency response is being spearheaded by the Stoke-on-Trent and Staffordshire Local Enterprise Partnership.

Chairman David Frost said the collapse of the company was “devastating” for everyone involved, whether they were working at the main customer services centre in Newcastle-under-Lyme or employed in the firm’s national store network.

“We will do all we can to support people whose jobs are at risk, working closely with councils and other organisations to fast track them to the Job Centre Plus rapid response service,” said Frost.

“Ironically this comes at a time when the jobs market in Staffordshire and Stoke-on-Trent is buoyant. We are seeing business expansion, inward investment and successful small businesses all contributing to job creation. The number of people claiming job seekers’ allowance in our area has fallen significantly in recent years and the claimant rate is below national and regional averages.

“While we are still uncertain about the future of the company, we know its employees have transferable skills and we must ensure they can be matched to the growing number of opportunities in Staffordshire and Stoke-on-Trent.”

The action is being taken in response to the company’s announcement that the business was no longer viable following a decision first by Vodafone and then secondly, EE, to end its service operator agreements with the firm.

Robert Jonathan Hunt, Ian David Green and Robert John Moran, all of PwC, have been appointed as administrators to parent company, Phones 4u Ltd, together with the firm’s own network operator, Life Mobile Ltd.

Phones 4u, founded by entrepreneur and philanthropist John Caudwell,  is one of the leading independent mobile phone retailers in the UK with an annual turnover of £1bn, more than 700 outlets with 5,596 employees.

Rob Hunt, joint administrator and PwC partner, said: “This is a very sad day for the business and the many people working there. In light of our impending appointment the directors understandably took the decision to close all the shops today and sent many staff home.

“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. The stores will remain closed while we have these conversations.

“We will also be talking to network operators and suppliers, and trying to access funds to pay for the costs of the business, including wages.”

He said the talks would determine whether the stores could re-open and continue trading, and whether staff would be paid.

“Our hope is that we will be able to pay all the outstanding wages arrears,” he added.

There are 720 stores in the  P4u portfolio including 160 concessions in Dixons Carphone outlets. Other companies in the P4u group which do not have any trading assets, but have also entered administration are : 4u Wi-Fi Ltd, 4u Ltd, Jump 4u Ltd, MobileServ Ltd, Phosphorus Acquisition Ltd, Phones 4u Group Ltd and Phones4u Finance Plc.

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