Rochdale and Middleton stores close as Phones 4 U enters administrations

Want to buy this photo?

Phones 4 U in Rochdale Town Centre

Phones 4 U have entered administration after network operator EE decided to cut ties with the firm.

Stores in Rochdale Town Centre and in Middleton will be closed until a decision is made by the administrators – ultimately putting jobs at risk.

It is understood that the contract held by EE was due to expire next September and the decision not to renew the contract came as a “shock” to Phones 4 U. This meant that after a similar departure by Vodafone earlier this month, with no mobile operators to supply them, the company had no choice but to enter administration.

In a statement issued on the Phones 4 U finance website, the company said: “We refer to the trading update published on 1 September 2014 regarding the decision of Vodafone Limited not to renew its network agreement with the issuer’s subsidiary company, Phones 4u Limited (P4U). Following that announcement P4U has been in discussions with other MNOs and MVNOs in
order to seek to replace the volume of connections it procured for Vodafone.

“On Friday 12 September 2014 P4U was notified by EE Limited (EE) that it had also decided not to renew its network agreement with P4U which is due to terminate on 30 September 2015. The connections procured under the network agreements with Vodafone and EE currently represent in excess of 90% of the connections made by P4U.

“In light of the immediate impact that the recent decisions of Vodafone and EE are likely to have on the businesses of the companies listed below (the Companies) and having taken appropriate advice, the boards of the Companies have carefully considered the situation and have concluded that there is no reasonable prospect of avoiding insolvent liquidation and that
they are no longer able to continue to trade.

“Accordingly the Companies have resolved to cease trading with immediate effect and place the Companies into administration.

“The issuer will provide a further update as soon as the directors are in a position to do so. The companies affected by the administration include:

1. Phones 4u Limited
2. Life Mobile Limited
3. 4u Limited
4. Policy Administration Services Limited
5. Jump 4u Limited
6. MobileServ Limited
7. 4u Wi - Fi Limited
8. Phosphorus Acquisition Limited
9. Phones 4U Group Limited
10. Phones 4U Finance plc