Phones 4u Limited (‘P4U', 'Phones 4u' or ‘the Company’) in administration- UPDATE

Published at 17:08 PM on 19 September 2014

Following the appointment on 15 September and subsequent discussions with parties expressing an interest in the Phones 4u business, the administrators have made the difficult but necessary decision to undertake a restructuring exercise at the Company’s head office in Newcastle Under Lyme. 

This restructuring reflects the nature of the expressions of interest in the business, and therefore the need to cut costs in the business.  Unfortunately this has led to 628 redundancies, with more than 400 employees being retained to continue to support and assist the administrators in their duties.

In relation to those employees based in stores, the administrators are continuing discussions with other parties regarding potential transactions. The store staff have been asked to remain at home until these talks are concluded.

Rob Hunt, joint administrator and PwC partner said:   

“It is with great sadness and regret that we have today made the difficult decision to make 628 head office and telesales staff redundant.  Our thoughts are with those employees at this difficult time.  We will make every effort to help the affected staff, working with the Phones 4u HR team over the coming days to support employees.

“This has been a difficult week for all staff and we want to express our sincere thanks to everyone at Phones 4u who has assisted us.” 

ENDS

Notes to editors

1. On 15 September 2014 Robert Jonathan Hunt, Ian David Green and Robert John Moran of PwC were appointed as administrators to Phones 4u Limited (P4U), a leading independent mobile phone retailer with an annual turnover of £1 billion, operating from more than 700 outlets with 5,596 employees. P4U’s insurance arm Policy Administration Services is also in administration.

2. Other companies in the P4U group which do not have any trading assets, but have also entered administration are: 4u Wi-Fi Limited, 4u Limited, Jump 4u Limited, MobileServ Limited, Phosphorus Acquisition Limited, Phones 4U Group Limited, Phones4u Finance Plc


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