Phones 4U has been a popular mobile retailer in the UK since it first launch back in 1996,the company announced today, that it has gone into administration.
The company has around 5,600 staff, who’s jobs are not at risk, but this is not a company who isn’t making money, they made a net profit of over £100 million in their last financial year.
The reason that Phone 4U has gone into administration is that the mobile carriers have decided not to renew their contracts with the retailer.
The problems started earlier this month when Vodafone decided not to renew their contract with Phones 4U, and then last Friday, the company’s final contract, which was with mobile carrier EE was withdrawn, meaning that the company now has not contracts to offer its customers.
The company was founded by John Caudwell and his brother back in 1987, and it was sold in 2006 to a private equity firm for £1.46 billion, the companies founder posted on Twitter, when he heard the news, you can see the tweet below.
— johncaudwell (@johndcaudwell) September 15, 2014
The various mobile carriers have been opening more and more of their own high street stores over the last few years, and they obviously don’t want the competition with mobile retailers like Phone 4U.
This is bad news for consumers in the UK, who now have less choice on where they can buy their smartphones and mobile phones from, it is also very bad news for the company’s 5,600 staff, and it is sad to see a profitable company go out of business.
Source The Next Web