1,700 Phones4u jobs axed say administrators
THE jobs of almost 1,700 Phones 4u store employees have been lost after administrators were forced to admit defeat in their battle to save part of the company which collapsed last week.
In a statement last night, administrators from PwC said it had failed to find buyers for 362 stores around the UK and that consequently these would have to close with the loss of 1,697 jobs.
A full list of the stores affected is expected to be released later today.
However, administrators have been able to save the jobs of more than 2,000 Phones 4u shop staff after deals were concluded between service operators EE and Vodafone to take on a number of the Phones 4u stores.
Last night’s statement read: “The administrators are pleased to confirm earlier announcements regarding the transfer of more than 2,000 staff working in 198 P4U stores and 160 concessions. The transaction was subject to court approval which has now been received and these transactions are now being finalised.
“Unfortunately, there is limited interest in the balance of the estate from parties considering going concern offers. This comprises 362 stores. Regretfully, as a result, the administrators announce that those stores will close permanently and 1,697 staff employed at these locations will be made redundant.”
Another 720 people have been retained in the short term to assist administrators with the closure programme.
Rob Hunt, joint administrator and PwC partner said the closures were very much regretted and the focus now would be on helping the affected staff find new jobs.
EE yesterday agreed to purchase almost 60 stores from the collapsed retailer in a deal worth £2.5m. The deal saved the jobs of 359 people.
Administrators said the stores 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 followed the earlier agreement 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.”
