EE agrees £2.5m deal to buy-out 58 Phones 4u stores

MOBILE phone operator EE is to purchase almost 60 stores from collapsed retailer Phones 4u in a deal worth £2.5m, administrators have confirmed. The deal saves the jobs of 359 people.

The agreement was announced in a statement by Phones 4u administrators this morning.

The joint administrators said EE had agreed to purchase 58 Phones 4u stores in a deal worth £2.5m. The agreement preserves the jobs of 359 people employed at the stores.

The location of the stores has not been disclosed, however, administrators said they would be re-branded to EE in due course.

The transaction includes Phones 4u’s interest in the 58 stores’ leasehold properties and their fixtures and fittings and various associated contractual rights and obligations, but does not include store inventory, which will be recovered and realised separately by the administrators.

The deal has been agreed between the parties but remains subject to the court approving the release of the fixed charge security held on behalf of the secured creditors.

The administrators said they would be making an application to the courts today for the release of the fixed charge security that will enable the sale to be completed.

The court hearing will also cover the application by Vodafone to purchase 140 Phones 4u stores; a deal which will save the jobs of 887 shop staff.

Rob Hunt, joint administrator and PwC partner said: “We are absolutely delighted to have completed this further disposal of 58 Phones 4u stores, which will both recover value for secured creditors and save 359 jobs. As with the Vodafone transaction, we consider that this represents the best potential outcome for creditors in the circumstances, although it remains subject to the approval of the UK courts.”