800 jobs saved as Dixons Carphone announces deal for Phones 4u staff

ADMINISTRATORS of Phones 4u have announced that Dixons Carphone is to offer jobs to the 800 people who worked in Phones 4u concessions in its stores.

Rob Hunt joint administrator and PwC partner said:  “We can confirm that Dixons Carphone have agreed, with our blessing, to offer roles to all people in the Phones 4U concessions located in Dixons Carphone outlets.

“This agreement relates solely to staff and does not include the sale of any stock, chattels or the Phones 4u brand name.

“We’re delighted to reach this agreement, thereby securing continued employment for more than 800 people. We would like to wish the transferring staff all the best in their new roles.”

“We continue to engage with other parties regarding their interest in parts of the business.”

The 800 people concerned worked in Phones 4u concessions at Currys and PC World stores.

Phones 4u set up the shops-within-a-shop at Dixons-owned Currys and PC World before the merger between Dixons and Carphone Warehouse was announced.

The 160 concessions were due to end next year as Carphone Warehouse and Phones 4u were competitors.

The Phones 4u business went into administration at the start of the week.

The move put 5,596 jobs and more than 700 outlets at risk, and came after Vodafone, EE and O2 did not renew their contracts with the company.

Meanwhile, operators have been holding discussion with Phones 4u’s administrators about taking over its stores and stock, reports suggest.
 
Sources close to the business are suggesting EE, Vodafone and other network operators have made contact with Newcastle-under- Lyme-based Phones 4u’s administrators at PwC about buying part of the business.

PwC revealed the interest on a call with bondholders on Tuesday evening, 48 hours after Phones 4u went into administration.

Midlands-based entrepreneur John Caudwell, who founded Phones 4u in the mid-1980s, hit out at the “extremely callous” mobile networks for the collapse of the mobile phone retailer.

In a response Vodafone denied the accusations and blamed the company’s management for its demise.

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